This Epinion is a trip down memory lane - this was my first Epinion ever and, in hindsight, it stank! But I kept some of the original text as part of this review.

I should have known by the marketing material that this bank was not for me. Like Mom always said, "First impressions are lasting." She wasn't right about everything else, but I'll give her that one! The brochure arrived, cheaply printed in garish colored ink that came off on my hands, extolling the virtues of their card "helping to repair your credit". Here's what it didn't say:

1) The rate - 18.25% - is normal for cards of this type. But did you know that it will cost you up to 225.00 in fees just to open this account? Funny, neither did I. Is it in the materials I received? NO. So, if you are approved for a 300.00 credit line you will have a balance of 75% of your available credit BEFORE YOU EVEN USE THE CARD! Also, since your debt to available credit ratio is a significant factor in your credit score, this HURTS rather than helps your credit score. In my opinion they are committing not one, but two illegal offenses - the failure to disclose the fees, and the false advertising that is harming consumers. I do have a law degree, but this is not my area of expertise. So I have decided to forward all the paperwork I received, along with this Epinion and a few others to The New York State Attorney General's Office - Consumer Fraud Division. Let's see what the Honorable Elliot Spitzer thinks about this. What about YOUR state's attorney general?

(Note to Epinions Readers - the Attorney General is not your personal lawyer. His or her function is to prosecute against consumer fraud. They will not get involved in a civil action, but in cases of fraud they can be most helpful. See if your state has a website for guidance here.)

2) I believe that they violate federal (and state) banking laws as well. I sent checks in for the full amount of the balance on the first bill. They cleared my bank immediately upon presentation, but it took two weeks, 3 phone calls, and an angry letter to get them posted to my account. The customer service representative I spoke with explained that since my card was new, "security" wouldn't credit it to my account for two weeks, because "some people bounce checks and end up with a negative balance". She assured me that I wouldn't be charged interest during this time. I wasn't, but it's ridiculous that for two weeks after MY money left MY bank, it wasn't available for use on MY card.

3) There is a $6.00 monthly "participation fee". They charge this because they are doing you the enormous favor of reporting your payment history to the three major credit reporting agencies - Experian, Equifax, and Trans Union. Are they kidding? There is no reason to put up with this, so...

I called up to cancel the card today, and the customer service representative tried to ARGUE with me about why their bank was so great. I finally got him to admit that their "program" wasn't for everyone. He also said that since I had already paid for the benefit of the card, I might as well stay with them for a year. My response: "We'll see about that. I've reported you to the New York State Attorney General's Office... Hello? Hello?" Hmm... he hung up! The minute I get word from either source I will post it here. I will cancel this account IN WRITING by fax, FedEx, and mail.

This bank is in Sioux Falls, South Dakota - apparently they think it's Dodge City out there. The CEO is probably related to Jesse James! I would NEVER recommend this to anyone trying to square their credit away. Try Capital One, Providian, or Orchard instead - see my reviews for my experiences with them, as well as my review on credit cards in general for a detailed explanation of your FICO score.

Thanks for reading!

COPY OF COMPLAINT LETTER

July 26, 2001

First Premier Bank
900 West Delaware
Sioux Falls, SD 57104

Attn: Customer Service

Re: Account Number ______________________

To Whom It Obviously Doesn’t Concern:

The primary purpose of this letter is to request that you close my account, effective immediately. I have enclosed a check for the full balance due. The secondary purpose is to tell you why.

Your service to the sub-prime lending market is the absolute bottom of the barrel. The fees and costs associated with your credit card, as well as the misleading information in your advertising, should be illegal. Perhaps they are. The New York State and South Dakota Attorneys General will be looking into this when they receive a copy of this letter, as well as copies of your advertising and marketing material.

Just to let you know what the banking public thinks of you, I have enclosed some publicly available opinions about your ridiculous policies and fees. They make for rather informative reading, especially on a website that averages over 100,000 visitors a day. I enclosed my own, as well as three others as just a sample of what the public thinks of your “bank”.

I’m not sure what makes people do business this way, but if I can put a stop to it I will. Get ready. I’ve emailed several customers and prospects in several states, urging them to contact their State Banking Departments and Attorneys General. It’s going to get really interesting for you over the next few months! At a bare minimum, it will cost you in man-hours and attorney’s fees far more than you ever made on my account.

The funny part is that if you had responded to my last letter effectively, or if your customer service representative had handled my call effectively, I would have not been so inclined to do this. Oh well. Live and learn. Or, in your case: live, learn, and go right out of business.

Sincerely,

Thomas N. Tronolone



Recommended: No