Friday, August 01, 2008

A REAL premier gold card

How many of those credit card offers do you get in the mail each week? I can't keep count anymore. You might never believe there is a crisis in the capital markets associated with inadequate due diligence before offering people credit.

But every now and then one comes through that you are tempted to sign. This one wended its way to my office, having first been mailed to me at our division of otolaryngology. That alone should have given me a hint. (Not being an MD, I am not anything close to an otolaryngologist and have always had trouble pronouncing the word.)

It was a premier gold card from Capital Network Leasing Corporation, aka CAPNET. It offered me $100,000 in available credit -- 0.0% interest or no payments for 90 days; no activation or annual fees; and seasonal promotions for preferred customers. In small print, it said "We will not require financial statements or tax returns for any transaction under $100,000, but do reserve the right to request and verify your financial statements and tax returns for all transactions over $100,000.

I'll keep my transactions under $100,000 so I don't have to provide proof of creditworthiness. I hear that you can get good deals on HumVees right now. Maybe I can squeeze in two under the limit.

But, boy, if you get $100 grand with a gold card, imagine what platinum would bring!

10 comments:

Anonymous said...

you do not seem like the humvee type.....how about a few mini mini coopers(smile)

Anonymous said...

Please add me to your Christmas list.

Ben B. said...

Paul, I've also received the same mailing.
Several things jumped out at me, the first of which was that this was not an application for a credit card, it was the card itself - a card I for which I had never applied!

The second was, of course, the supposed $100,000 credit limit, right out the gate, with no info previously supplied.

The third was that there was NO contact information for the supplying company, save for the (877) number to be used for activation. You know the drill: you call the 800 or 877 number, and walk through the prerecorded steps to confirm authorization and that's it. What is not apparent is that this call also authorizes the company to perform a full search on your credit stats.

The fourth thing that concerned me was that the Capital Network Leasing Company is just that: a (largely industrial, I believe) leasing firm that has not established a track record in the credit-card arena.

Whole thing seems fishy, and your post was the only reference I've seen online so far.

Anonymous said...

I too, have received what appears to be a credit card limit 100, 000 that I did not apply for and I agree it seems really fishy! I am in the process of opening another buisness so at first glance, I thought , how convenient! But I am doing some research on both the card and Capnet! Remember the saying, 'If it seems to good to be true..........

BenB said...

This being a Southern-California-based company, I searched the L.A. Better Business Bureau and came up with this page:
http://www.labbb.org/BBBWEB/Forms/Business/CompanyReportExtensionPage.aspx?CompanyID=13193817&sm=#AdvertisingReview
which contains the following paragraph:
"On August 29, 2008 we wrote to this company asking them to revise their current advertisement or mailer, which exclaims “Protect yourself from fraud Activate your card now!” . According to the company, they do not offer credit cards, and the mailer is not a credit card offer. The company claims it is only a marketing tool used as a solicitation to apply for lease financing. We believe that the offer is deceptive and misleading and requires revision to make the offer clear. The company has been asked to reply within 10 days."

Well, 10 days is up, folks.
And I don't really think the BBB is doing their research here:
1. It's clearly a credit card that CapNet is offering, right down to the 16-digit embossed serial number on the card (DESPITE the fact that there is no affiliation with Discover, MasterCard etc. on the card or the notice)
2. BBB says, "According to the company, they do not offer credit cards", yet CapNet's own website clearly states that they do offer credit cards: http://www.capnetusa.com/Products/CreditCards.aspx

.....harrrumph.

BenB said...

So, the resolution to this story?
(so far that is...)

The SoCal Better Business Bureau reports that CapNet has written them a letter promising to cease this type of mailing in the future.
Apparently that's good enough for the BBB, who has now removed the notice I mentioned above from their CapNet page. It is now replaced by the message
"Advertising Review:
No question about the truth of this company's advertising has come to our attention."
Now, do we find this to be an accurate statement about a firm that blatantly lied to the BBB, saying that "they do not offer credit cards" when CapNet's own website clearly states that they do?

So please, if anyone receives any further phony credit cards from Capital Network Leasing Corporation, make a report at www.labbb.org .

Over and out.................

Anonymous said...

As benb said, keep reporting CapNet/Capital Network Leasing Corporation to the BBB or other relevant organizations. I am a small business owner, and I received their card as well. I am so glad I came across this thread.

Anonymous said...

I was alarmed at first when I received the marketing piece back in June of this year, notifying me that we had been approved for $100,000. I am the CFO of a chain of Exxon Gas Stations and myself nor the business owner applied for such a line. While I was skeptical at first I did my research on CapNet Financial Services , formerly Capital Network Leasing Corp. They are financial services company that provides leasing, financing, accounts receivable, and working capital loans for business. I called “to activate” and feel them out. The rep that answered the phone, Paul explained that the business had been pre-approved based on the business credit standing through Dunn & Bradstreet and past financing with their network of banks. At the time we were upgrading our coolers and refrigeration and were interested in the alternative financing so I figured we’d give them a shot to bid some numbers. Our business has been around for 10+ years and has never had trouble securing credit but we always finance through a local business bank which places blanket lien’s on the business every time we purchase equipment above $50,000. I faxed him our invoices and signed Express Validation form, not only did they get us an approval for approximately $70,000 they paid our vendors in 4 business days (from the initial call). I asked about the no payments for 90 days or 0% , the rep also offered working capital and extended our differed payments to 6 months. It was literally the most painless loan we’ve done for the business. Because our company is headquartered in West Los Angeles I drove out to their facilities to meet them in person. They were located in a brand new building in Burbank, CA. The staff was friendly, and knowledgeable.

I wanted to post this because if I had read this blog before I called CapNet I probably would have not given them a shot. However the rep I worked with was amazing and got the job done. I would definitely do business with them again. If you get over the gold card marketing piece and call in to speak one of their

Anonymous said...

CapNet's BBB rating was updated.

"Some complainants allege false advertising, or deceptive marketing practices concerning a mailed solicitation offer for a revolving credit account. Other customers report high pressure sales tactics, or incomplete disclosures concerning financing or leasing contracts. Most complainants request to be removed from the company's mailing list. The company responds to complaints by advising customers that the mailer is a marketing tool that advertises their equipment leasing services to businesses, and is by no means an account that has been opened. The company agrees in most cases to remove the complainants from their mailing lists."

Anonymous said...

It seems that the October 6 Anon comment is from CapNet itself..