That was the exact type of product I saw advertised. I am still looking for the website. I used to be able to find it easily, I can't find it now. Still looking.
TheNewWorldMan wrote: But I'm reasonably certain the right lawyers could set the product up in such a way that it would pass legal muster without a problem.
.... maze of procedures and dead ends and endless disputes and consumer Whack-A-Mole, sooner or later people start taking matters into their own hands.
Under this scenario, both parties have broken the law. The company has reported to the CRA that the individual has a line of credit, which he/she does not. The person has applied for credit on the basis that their history includes a line of credit, which it does not.
But would it really be illegal, even if tested?
Think about it. I give someone a $500 line of credit, but the "credit" is in non-liquid form that they can't use. I charge them $39.99 up front plus $5 a month for the credit line, deducted from their checking account. I then report to the credit bureaus that my client has a $500 line of revolving credit with a $39.99 balance, $5 minimum due monthly, and it is paid every month in good standing.
Of course, lawyers could make it work far more slickly than I have it described above, but seriously, what would be illegal? Unethical? Perhaps. But I'm reasonably certain the right lawyers could set the product up in such a way that it would pass legal muster without a problem.
ObsessedwithmyFico wrote:I found this on craiglist this morning:...***I can legally add a new account in your own name with credit limits from 5,000- to 10,000 at reasonable rates****
***I repeat the account is reported to all three bureaus and in your own name.
...Seems to me this cannot possibly legal much less ethical..How do they get away with it?
I guarantee you something like this could be set up in such a manner that it would not violate the letter of the law.