Re: Credit Store

Posted by Paul (207.44.154.35) on January 22, 2004 at 17:29:27:

In Reply to: Credit Store posted by Chaz on January 20, 2004 at 18:55:45:

“”One of the companies aggressively buying uncollected debt is Credit Store Inc., a South Dakota financial services company that markets credit cards to consumers who, in its words, "previously had an interruption in repayment of their debts."
Rhode Island resident Roger Levesque started receiving Credit Store solicitations in 1996, two years after his debts of $34,000 were erased in Chapter 7 bankruptcy proceedings. The Credit Store promised to restore Levesque's credit rating and to give him a new, $1,400 line of credit, he said. The offer sounded great until Levesque read the details and realized that by accepting the new credit card, he would voluntarily be agreeing to pay $1,000 of an old credit card debt that had already been discharged.
Levesque turned down the offer. "I didn't believe I should be paying back a loan that was cleared in bankruptcy," he said. “”

The Credit Store, Inc. (AMEX: CDS)
According to a press release, The complaint charges certain of Credit Store's former and/or current officers and directors with violations of the Securities Exchange Act of 1934 and, specifically, alleges that Kevin Riordan, Jay Botchman and certain other past officers and directors made false statements or omitted material information about Credit Store's business and financial results causing its stock to trade at artificially inflated levels during the Class Period. The Credit Store represented itself to be a technology and information based financial services company providing credit card products to consumers having insufficient financial credentials to otherwise qualify for an unsecured credit card. In truth, the success of the Credit Store and the financial performance represented to its public investors were materially false and dependent on inaccurate assessments of Company business. The Credit Store created and used, inter alia, wholly owned satellite companies that served as devices to provide inaccurate financial accounting and disguise the deteriorating financial condition of the Company. The true cash flow for the Credit Store and multiple operating difficulties were being concealed during the Class Period. This allowed the improper diversion of Company assets and liabilities through mismanagement that improperly benefitted Company insiders. On August 19, 2002, Credit Store filed a voluntary petition under Chapter 11 of Title 11 of the United States Bankruptcy Code. Absent this bankruptcy filing the Company would be a named defendant.http://www.securitiesclassactiondirectory.com/casehome/1238

And according to Bud Hibbs

*****The Credit Store filed for Chapter 11 on 8/15/02***********

If you are doing business with this loser, lose them. If they appear on your credit files, dispute the account as 'not mine.'

Bye, bye debt collector!

• The Credit Store

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