Determining if the state you reside in is in a full blown recession depends on two things: what your state government facts and figures are, and what the subordinate mass media spews out on the local evening news. We guess for most middle and lower income families you would state “yes there is a recession, and yes this one hurts.” Oh but wait, look what you received in the mail today, a credit card offer from First Premier Bank with a fixed 9.9% interest rate.
This offer looks legit, but read the terms and conditions insert that comes with it.
the fees are astounding. We calculate an upfront fee of $179.00, this is a prime example of predatory lending. Those fees don’t stop there, every month you will be charged $7.00 monthly fee. The Monthly fee is part of your balance so you actually pay interest on this fee. If you are in dire need of this card right away you will also be charged an expedition fee $25.00. We will analyze these fees and more in a bit. We will also discuss “H.R. 1461: Credit Card Accountability Responsibility and Disclosure Act of 2007.”
We got our grubby little hands on one of these offers, and decided that we didn’t quite understand what the terms were. We called up First Premier Bank and spoke with Jessica (would not give last name) a customer Service representative. Our first question to Jessica was “what is an account set up fee?” She was polite enough to reply with “Oh that is just a program fee under the card account type.” This is a program fee of $48.00, well isn’t the second fee on their “Terms and fees” page a “Program” fee also? When we asked that, Jessica got somewhat tongue tied. Jessica, is it really that expensive to maintain one customers account that you would charge them a $7.00 monthly fee? A quick retort of “I just sign up customers, I don’t decide fees.” So, now the customer has decided “I really need some money.” The fees don’t stop there; you will be encouraged to use online bill pay, as it is “guaranteed.” What are the fees for this; well let’s just see what you get dinged for: $3.95 internet access fee, an $11.00 autodraft fee, and a $7.00 autodraft transaction fee. Now it is time to add up your first month’s debt on this card, we came up with $232.95. Wow, add your interest and you could reach $250.00. Here is the kicker, we did some research and found that most cards issued by First Premier only have a $250.00 credit limit. But wait, there’s more your interest has already been compounded and now you find that you are over the limit, so first Premier charges you a $29.00 over the limit fee.
Luckily the American people have members of congress on our side. The U.S. Senate Committee on Banking, Housing, and Urban Affairs drafted H.R. 1461. Essentially this bill would help people who are experiencing Interest rate hikes, but what we would like to see, is members of the Senate add clauses, and stipulations that would prohibit any kind of extraneous fees being charged to credit card holders. Financial institutions such as First Premier, will most likely try to admonish that fees are necessary in order to survive in the business world. We cry B.S. to that one. Here is a great article written by John Ulzheimereditorial will give you a concise look into how credit card companies survive. What we encourage the consumer to do is, download our letter and mail it in, in support of this bill to your state Senator, and your House of Representative. The ground work has already been laid; we have a pdf file here that is testimony to U.S. House Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit by Kathleen E. Keest from the Center for Responsible Lending. Read the proposal for amendments, and the facts of predatory lending. You might find it interesting that Kathleen uses First Premier as an example.
We encourage Dana Dykehouse to respond, and defend these fees and actions. According to their website they tout a 0.00625% complaint ratio. We disagree, Dana have you “googled” “First Premier credit card complaints?” Furthermore Dana, did you not learn your lesson from being hit with fines from New York’s Attorney General. We applaud Andrew Cuomo, and would hope that other states follow suit. But, we ask you to take a proactive stance, fill out the form and send it in. If you don’t know who your House of Representative is you can find it here.
Here is a generic letter to your House of Representative, it is a pdf file
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8 Comments, Comment or Ping
Kathleen
This article is 100% correct. This is exactly what I see in my own account activity. They charged me for going over limit last month when it was THEIR FEES that put me over my limit!!!!! And then they had the gall to keep harassing me by telephone to get me to pay down my credit card BEFORE THE DUE DATE because it was “over limit”!!!!!! It was THEIR FAULT it was over limit!
And it gets better…I paid online (and BEFORE the due date, I might add), as they prefer, and they held my funds for ONE FULL WEEK before they would allow us to use this card again!!! We were declined to use it because they were holding my account “while the funds cleared”. Well, guess what….those funds LEFT MY BANK ACCOUNT within a day of paying that bill online!!!! They held on to my personal cash, while THEY earned interest on it, and kept me from using this credit card in the meantime!!!
They are sheer, and utter THIEVES!!!!!
Feb 20th, 2009
Kevin
Kathleen is completely right, article is correct as well. I am having a similar experience with these people and this sorry excuse for a credit card. I don’t know what I am doing with it anyway, I only “enrolled” because they presented it as a great way to improve your credit with monthly reporting to credit and financial institutions. I am not even sure that this is true now that I see their idea of business and treating people. Finally, Jessica may be somewhat correct in that there is only a mere .00625% complaint ratio on their services. One only need try to get in contact with a live representative to see how this is might be true.
Mar 12th, 2009
Kevin
So to be fair, I downloaded my credit report yesterday and it does appear First Premier reports to them and so that is a good thing. Also there is a phone number online to get in contact with actual people, and they will answer your questions accurately. The policies and fees are still crazy, and I have a hold on funds I wired directly from my bank account. But then again…I am the one who screwed up my credit to begin with, and I entered into this thing with my eyes opened that it was more of a high interest debit card than a credit card after you pay all your fees. But this card will help me build credit so I can get a good one in the future. Thats the lighter side of First Premier.
Mar 13th, 2009
penelope white
Loan Shark for sure! Over 2 years of perfect payment history, never gotten an increase. But I am being deluged with offers of a separate 2nd card, separate credit limit…and they make another 178.00!!! A truly smarmy company!
Apr 9th, 2009
kelly
They did me dirty to but I will not pay them another cent they can call all they like and try to harass me I don’t care if thats the best they can do bring it they even threatened me with credit card fraud charges well go for it btw thanks for the high interest rate and hidden charges they will never see any of that money we bailed you out and all of these other thieves not the other way around should have let all the banks go under in the first place were was the bail out for people getting ready to loose there homes to these parasites Americans should stop being pussies and man up don’t pay them we will still all be here when they are long gone.
Aug 11th, 2009
Tracy Snow
Ohhh boy…Yep, been there and done that. I recently filed a formal complaint with the BBB regarding 1st Premier. Below is my complaint:
Upon reporting my credit card stolen, the woman told me a new card with a new number would be issued to me. I told her I don’t want one, to please just cancel the card altogether. I made it clear I’ll pay my balance owed, but please cancel the card. She directed me to an “Account Specialist” who calls himself “DJ” and refuses to disclose the rest of his name.
Upon having to explain the situation a second time, and telling “DJ” to cancel the card and refrain from sending me another, “DJ” became very smug and demeaning and told me that closing my account “..just does not make good financial sense to me! You open an account and want to cancel it 4 months later just because the card was stolen?! It makes no sense to me, we’re sending you a new card!”
I told “DJ” that his personal opinion regarding my choice to cancel is of no significance to me and reminded him that HE is NOT paying my bills.
He then began yelling (yes, actually YELLING) at me about how he’s trying to do me a favor, how he’s trying to save me money, etc.
I reminded him that he is NOT trying to save me money, he’s trying to keep me on as a customer so the company can make more money off ME.
He became very angry and continued yelling. I asked, “Why are you yelling at me??” He says, “BECAUSE YOU JUST WON’T LISTEN TO ME, YOU DON’T UNDERSTAND ANYTHING I’M TELLING YOU, JUST LISTEN TO ME!!”
I requested a supervisor, he put me on hold for less than a minute, came back and told me I could not talk to a supervisor because they were all busy and would just have to wait for a call back that would come in 6-8 hours. I knew he was lying because he didn’t want this forwarded to a supervisor.
I hung up and called back, specifically requesting a supervisor over the Account Specialists department- and got one within a minute of holding. She called herself “Misty,” and gave the standard insincere apology and promised my account would be closed and another card would not be issued.
I then contacted Customer Service to find out if it is standard procedure to train Account Specialists to behave so outrageously. She said their objective is to keep customers and that there are certain scripts and procedures they are told to use- and that they are encouraged to aggressively pressure customers into staying.
Thank you for using the Better Business Bureau’s Online Complaint System.
Your complaint has been assigned case # 300051478.
Correspondence regarding this complaint will be emailed to :
Please print a copy of this for your records.
Filed on : October 9 2009
Filed by :
Tracy Snow
I also requested that the following letter be forwarded to Dana Dykehouse:
ATTENTION: DANA DYKEHOUSE, FIRST PREMIER BANK
I feel it is in the best interest of consumers (and will also benefit First Premier) to completely overhaul your customer service department. First Premier should change the way their account specialists and other representatives interact with the people who are making them rich. Rude, pushy, aggressive behavior is very counterproductive, very childish and immature, and extremely unprofessional. Training people to behave aggressively and encouraging them to use intimidation is unethical on so many levels. Add this to the list of reasons the public has such a negative opinion of banks and credit card companies. If you want to keep customers and get new ones, while setting a good example for other companies, stop using mob tactics and start behaving like a professional business. Teach your account specialists to behave like normal professionals instead of emotionally retarded bookies. While you’re at it, get rid of hyper-aggressive psychos like “DJ” and try hiring some decent human beings instead of the snotty, arrogant flunkies with inferiority complexes that you have now.
Regards,
Tracy Snow
Nov 19th, 2009
Patricia Shiflet
They are evil, conniving thievesAfter rec’ing an unsolicted app. for their card, w/ a “required activation fee” of $75.oo, immediately I trashe dthe entire thing.
Yet, one month later, they deducted the smt,, thru EFT, from my acct.! AND, I NEVER GIVE OUT ANY PERSONAL INFO> TO ANYONE, not to mention, I’d never even spoke to them! How did they accomplish that? Now, I must get contact info. for my bank to take action! What do I do? Anyone w/ legitimate info., plese, post on here!
Mar 9th, 2011
Lori
I am going thru an outrageous situation with first premier they are accusing me of fraudulently using my father inlaws debit card to pay my bills. They asked for verbal authorization, so we gave it tpo them after two years of making pmts they decide I fraudulently paid my payments after one hour on the phone with a CSR they asked that the account signer give written authorization and FAX it to their security department. A week later a letter from them states my account is revoked due to inability to verify authorization. I call and get yelled at them stating they never received anything I said my FAX.said you did what did your employees do with it.the call got nowhere fast it ended with me saying I want copies of every phone calls recording I have made the last year and I will be talking g to a lawyer.I will keep u updated.
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Mar 12th, 2011
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