I'll never be free of First USA!!
Written: Mar 05 '00
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Product Rating:
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Pros: um, pretty cards?
Cons: poor customer service, eternal accounts
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| rosieroon's Full Review: First USA |
A number of years ago I got a First USA Card (back then it was FirstCard). It had a high interest rate, but I wasn't as financially "astute" as I am now. I didn't use it much and usually paid it off in full when I got the bill. After I married, my husband and I established credit together so I put that card away, figuring I could use it case of "an emergency".
Last year I was placing an order with a catalog company that would defer payment for several months. I like that idea for this particular item as I thought I might have to return it, then I wouldn't have to deal with a charge, then a credit. I grabbed a card out of our desk (we rarely carrying our credit cards) and it happened to be my First USA card. I placed the order, and all seemed fine.
Two months later my husband and I decided to close the credit card accounts that we never used. One of them was for First USA, so we followed their procedures and closed the account. I remembered my deferred charge order on First USA, so I called the company with whom I placed the order (On the advice of First USA) and gave them a new credit card number for the prior purchase. No problem, they said, happened all the time.
Again, two months passed. I was surprised to find in the mail a charge on my First USA account for the catalog order. I immediately called them, and after being transferred several times, I finally was able to talk to a customer service rep. She asked if I had called the catalog company. I hadn't yet, as my first concern was that a charge had gone through on a canceled account. First USA said that this was a charge that had been tentatively approved when I placed the order, so there was no way to stop it from going through, even though my account was closed. Come again? I know that companies can check to see if you have enough credit available when applying for an order to go on a deferment charge, but that has nothing to do with the actual charge going through (as I had been told when I called the catalog company to give them a new charge card number).
The CSR insisted that First USA was not at fault, so I insisted on talking to her supervisor. After holding the line over 30 minutes for him, he came on and had obviously been filled in on my predicament. I asked him how a charge can be placed on a closed account. His exact words were "You can never truly close a credit card account." What?? I asked him how that could be, and he explained that while rare, mistakes can happen and I would always need to be "on the lookout" (his words again) for misuse of my "closed account number". In other words, I can close an account with a bank/credit card institution, but if they screw up I may have to do the legwork at correcting their mistake. To make matters worse, throughout this conversation this man was condescending and rude.
I was astounded. I was under the assumption that if I closed an account, I was responsible for the balance owed, and if a company tried to put another charge on the account, it would be rejected. In fact, I called the two banks with whom my husband and I still have open credit and they concurred. Once an account in good standing is closed, it is CLOSED.
The First USA manager ended by saying all I could do was file a protest, saying the charge was fraudulent. I ended up calling the catalog company. They apologized, and offered to credit First USA and charge my other account -- 10% less, I might add, for my trouble.
While I realize that the catalog company made a mistake by charging my First USA account, I hold First USA responsible for allowing that charge to clear after my account had been closed. The idea that I'll never fully close that account is ridiculous. I understand that keeping track of my credit via my credit report is a smart thing to do, but I also have faith that any financial institution with whom I do business will follow their own rules in regard to establishing, running, and finalizing my account.
Recommended:
No
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Epinions.com ID:
rosieroon
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Reviews written: 73
Trusted by: 101 members
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