Pennsylvania is suing an Erie, Pa., man for charging consumers application fees for subprime credit cards they never received. State Attorney General Tom Corbett filed a consumer-protection lawsuit Tuesday in the Court of Common Pleas of Erie County against Richard E. Wood. Wood's unregistered business, New Card Services, advertised in newspapers throughout the state that his company would provide Visa or MasterCard cards with credit limits up to $7,500, even for consumers with bad or no credit. According to the lawsuit, obtained by CardLine, Wood collected fees from consumers who filled out a "New Card Member Order Form" sent to them after they called an advertised telephone number and left their names and addresses. Applicants paid $89.95 for a "$7,500 Credit Level 3 Guarantee," according to court documents. They paid $69.95 for a $5,000 credit-limit guarantee and $49.95 for a $3,000 guarantee. The forms requested the applicants' names, birth dates, addresses, Social Security numbers, telephone numbers, gross monthly incomes and signatures. But Woods' company never sent credit cards to the applicants, according to the lawsuit. "Instead of getting new credit cards, the only thing consumers received was a list of banks and businesses that offer credit cards–information they could have gotten themselves for free," Corbett says in a statement. Corbett's office did not provide an estimate of how many consumers were affected by the alleged scam, but consumers had been calling in about their dealings with New Card Services before the office announced the lawsuit filing, a spokesperson for Corbett tells CardLine. In 2004, New York Attorney General Eliot Spitzer sued Richard Wood and Michelle A. Wood for similar activities when they operated another company, Credit Card Services, in Sherman, N.Y.

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