Say that a consumer applied over the phone for a credit card. When they got it, they found that there were a whole bunch of fees tacked on, such as application fee, startup fee, annual etc. In fact, was just a $250 limit, most of which was eaten up by the fees. What recourse do they have to cancel the entire account?
Did you call in response to an offer received in the mail, or were you contacted by a telemarketer/scammer?
Were you dealing directly with the lender, or with a telemarketting organization? The basis for cancelling the card, including cancelling all the fees, is that there was no disclosure of the fees ahead of your agreement to open the account, so either the fees are not part of the contract agreed to and they breached that contract, or they deliberately committed fraud by adding fees without disclosing them. See the FTC site, and specifically the Telemarketting Sales Rule: http://www.ftc.gov/bcp/conline/pubs/buspubs/tsrcomp.htm If they act like the usual scammers, they will try to keep their money (that is really why they do this) and threaten to or actually trash your credit. Since they prey on people who they know already have bad credit, they consider the risk to be minor.
