CREDIT CARD OFFER PROMPTS CONSUMER COMPLAINTS

JACKSON -- The computer-generated letter from Credicorp Inc. seemed like a godsend to Chris Weaver.

An apartment dweller facing bills from college, she wanted to consolidate her credit cards but couldn't get a personal loan. The letter promised a gold-card membership worth $10,000 with a 12 percent annual percentage rate.

But Weaver noticed some strange details: The card had no bank affiliation, there were no federal regulations printed on her letter, one line stated the credit limit was "valid exclusively toward Credicorp purchases." And pre-approved applicants had to mail $29.95 prior to receiving a card.

After getting the letter Tuesday, Weaver made some phone calls. She started with the Better Business Bureau in Dallas, where Credicorp is based.

The BBB voice-mail system had a recording devoted to the corporation. It said Credicorp opened in 1990, and had a file with the BBB established the same year. Callers complained that the advertising was misleading, making them believe they would receive a general-purpose gold card.

Others complained that they sent their $29.95 and never received a card or merchandise ordered from Credicorp's special catalog. In response to each complaint, the company offered refunds or delivery.

Texas and Arkansas sued Credicorp in 1992, claiming its advertising was misleading, and the U.S. Postal Service filed a similar suit in 1993. Without admitting wrongdoing, Credicorp settled out of court with Arkansas and the Postal Service; the Texas case is pending.

In 1994, the Florida comptroller's office filed a cease-and-desist order against Credicorp because Florida law requires companies selling merchandise on installment to obtain a state license.

Credicorp's phone number wasn't listed on its letter to Weaver, but she called information.

A recording at the company says the gold card may be used to purchase merchandise from a catalog and to obtain discounts on motels and cruises. Callers have the option of holding for a customer-service representative.

One representative who answered stressed that the gold card was only for catalog merchandise. If someone wanted to order, he would have to obtain a card and catalog, then mail the shipping fee and be billed monthly payments "as low as $10."

Weaver said she was concerned that flood victims would receive the notices believing they could get extra cash to reconstruct their lives.

"A $10,000 limit? Twelve percent interest? Sounds great," she said. "It would be easy to be mislead and send your money."