Attorney General's News Release

December 7, 2001

Nixon sues, obtains TRO against Georgia business making unauthorized charges on consumers' credit cards

Jefferson City, Mo. — Attorney General Jay Nixon on Thursday (Dec. 6) obtained a temporary restraining order to stop a Georgia business from enrolling Missourians in travel or healthcare membership programs without their permission and then making subsequent unauthorized charges — for as much as $99.95 — on the consumers' credit or debit cards.

In addition to the TRO, Nixon filed a lawsuit against Preferred Alliance Inc., seeking restitution, penalties and a permanent injunction against the Lawrenceville, Ga., business. Preferred Alliance owns, sells and operates GenesisCard, a program that purports to provide discounts on various healthcare services and goods, and Vacant Sun Travel Discounts, a program that purports to provide travel and vacation discounts.

According to the lawsuit filed in Texas County Circuit Court, Preferred Alliance has sent numerous consumers in Missouri an unsolicited "membership packet," informing the consumer that he or she was now enrolled in a free 30-day trial membership with GenesisCard or Vacant Sun and would be billed $99.95 on his or her credit card unless the consumer called to cancel the membership within the trial period. Consumers who complained to Nixon's office had not agreed to the trial memberships and had not authorized Preferred Alliance to put the charge on their credit cards.

"Because the mail packet was unfamiliar and unsolicited, some consumers threw it away unopened and then received an unpleasant surprise on their next credit card or bank statement," Nixon said. "To make matters worse, many consumers told us it was next to impossible to contact Preferred Alliance through its toll-free number to cancel, because the phone line was always busy. We want Preferred Alliance to stop making these unauthorized charges and to pay back any Missouri consumers who were harmed."

In at least one instance, Nixon said a consumer reported that Preferred Alliance had obtained her credit card through another company from which she had placed an order.

Nixon encouraged other Missouri consumers with complaints about unauthorized billing on their credit or debit cards to contact the Attorney General's Consumer Protection Hotline at 1-800-392-8222 or file a complaint form.

The Federal Trade Commission offers more information on credit and debit cards and what to do if they're lost or stolen.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to the Communications Office.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818