Complain about a product or service

NextCard

Federal regulators closed NextBank, NextCard's parent company on Feb. 7, 2002. (story)

Yvette of Houston writes (8/8/01):
I filled out some information on-line in order to get a NextCard credit card. I was approved for a secured card, but after thinking about it, I decided that I did not want the card, so I called and used their automated line to cancel the card. Well the card came anyway, but I figured that it had already been sent at the time of my cancellation. So when the card came I didn't activate it.

I kept getting bills stating that I owed my deposit for the credit card. After several statements, I called NextCard and asked them why. The NextCard customer service representative told me not to worry about it because the card was cancelled and to disregard the statement. I continued to get statements. I called again and using their automated system, I cancelled the card again. I continued to get a statement.

Finally, I called and waited until I could talk to a customer service representative who told me that my account was not closed and was active. I asked how could that be when I have never used the card and did not call and activate it. She apologized for the mix up and told me that she would de-activate the card and I would be sent a letter stating this.

The consequences of my dealing with NextCard was that they have put this account on my credit report. It has me having a credit limit of $660.00 and owing $769.00 which looks like I went over my credit limit. This credit limit was only the amount of money I could put into my account in order to draw from it. This was not an unsecured credit card. If I didn't put money in, I had no money to use, which is why I decided against using it.

I'm in the process of repairing my credit in order to buy a house which is the reason why I applied for the card to help me. It has done nothing but hurt my chances now. I'm a single mother of a 20-year-old daughter and a 3-year old son (who desparately needs a yard to play in) that I want to be able to put into a house. I've been working very hard to work to pay off my debts to improve my credit and these people have added to mine. Putting that record on my credit reduced my credit score. I barely qualified for the program that I was in order for me to get my house, now I don't. I have to start all over again.

Yvette should write to the credit bureau, explaining what happened and asking that the record be corrected.

Etienne of Milwaukee writes (6/13/01):
I am being charged $541 on a credit card I have never activated. I have called twice to cancel this card but I keep getting a bill in spite of the fact that someone from customer service told me that the card has being cancelled.

This continuous fraudulent bill, caused a lot of stress to me especially when I had to use all my persuasive powers to convince my wife that I have not even activated this card, and that I had called immediately to have it cancelled. This in the long run is going to screw up my credit a lot more if it is reported to the credit bureau.

Etienne needs to send NextCard a detailed letter, preferably via certified mail, return receipt requested. He should be sure to keep a copy.

I got a support person immediately, and they were finally able (after MUCH negotiation and about an HOUR of going back and forth) to give me 16.9%. About 2 points higher than what I was offered initially, but at least the transaction wouldn't COST me money (yet!).

About 6 months later, after paying my bills on time, I tried to get my rates reduced. That card clearly had the highest interest I was paying, and I felt that I deserved a little better, especially since when I applied, they offered me a better rate to begin with. The person I talked to (I WISH I had written down his name!) said they could bring it down to 14.9. Great. A 2 point reduction. I was (briefly) happy with NextCard again.

But when I got my next bill, the rate said 19.9%! I ask for a reduction, they ok it, then instead of a 2 point reduction, they hit me with a 3 point increase? Imagine if I didn't closely read my bill! Again, I was forced to contact support, and again, after MUCH negotiation and OVER an HOUR of going back and forth, even talking to a manager, they were kind enough to restore my 16.9% rate, but could not offer the 14.9 rate they approved me for only a month ago. At this point, I made it my goal to eliminate this card from my wallet as quickly as possible, and end my business with this company. I had been putting every extra dollar I had into this card, keeping my bank account as low as I could endure, and using the card when necessary if I got a little over zealous with my overpayments.

What would have been a minor setback in that quest, last week, I needed to pay an upcoming, and fairly sizeable medical bill. I had little choice: pay it with the NextCard, or deplete my bank account almost entirely, since most of my extra money goes to pay the card off. I put a little more extra money toward the card to accomodate this, but when the time came to pay the bill, I was told that the card was declined. I had over $3,000 available on it, and the bill was only $1,200. I know I had $3,000 available, because their website told me this (and I knew that was about right). What the website DIDN'T tell me, was that since I had been using my card a bit more often than I usually do because I put all my money into that card, they suspended my account for suspicious activity. Well, no, correction, they suspended the card. They were more than happy to process the $2,000 and the $350 payments I had made days before (although the $350 one took about 2 weeks, which really screwed up my balance. If you can't process a transaction in 3 days, don't say you can). They also were not intuitive enough to see the corrolation between the two activities. To top things off, they suspended my card with NO ATTEMPT TO CALL OR EMAIL ME! I ended up having to pay this bill out of my checking account, then I had to run to the bank to do a balance transfer (after calling to chew some poor customer support people out for yet another screwup. Hey, NextCard, what's your turnover rate in your call center like?) so my rent check wouldn't bounce.

NextCard offered no explaination as to why no attempt to contact me was made before suspending the card, and refused to offer me a cash transfer at the standard interest rate, rather than the signifigantly higher cash advance rate. I've been told that a complaining customer does you a favor by giving you their complaint. That said, I considered deleting this message rather than sending it to NextCard, but I really feel the need to vent here, and know that someone (assuming they don't delete complaints as they arrives) at this company has heard what I think of them. To offset this benefit, I have chosen to voice my complaint to others as well.

Sam of Longwood, FL, writes (4/19/01):
Nextcard charged an incorrect interest for $65.80. The next month they reversed the charges. The following month they hid another $65.80 charge in the statement summary. I contacted them many times with no results. Finally, I closed the account leaving the $65.80 balance.

Nextcard harrasses my wife and I at least twice weekly. We do not owe the money. We refuse to pay a credit card company money we do not owe even if it brings on bad consequences.

Kennth of Arcanum, OH, writes (3/28/01):
First off, I want to say that debt consolidation and NextCard Visa do not mix. I had to consolidate my 4 credit cards, due to the fact that they were getting to be more than I could handle. NextCard was one of those that I went through credit counseling to kick off. I initiated my debt consolidation in November, 2000. Every one of my creditors, with the exception of NextCard, accepted the proposals given to them through my credit counselors, and the process was underway.

NextCard rejected the first proposal sent to them, claiming that the monthly payments that would be made were not enough to meet their satisfaction. Not a huge deal...Yet. A new proposal was sent to NextCard, and my monthly payments to the credit counseling company was set accordingly, in January 2001. It is now March, and I am still receiving harassing phone calls from NextCard, asking for money to clear the amount I'm over the limit for, due to the overlimit fees obtained while waiting for them to accept an agreement.

I received the first in a series of calls the last week of February, 2001. I explained to the person I spoke with that I was in the midst of credit counseling, that the first proposal to them had been denied, and that a new one should have been received. I was told that there was no record of another proposal being sent to them, and until they agreed to one I would continue to be charged overlimit fees, and would be responsible for the account despite the fact that my credit counselors were paying them each month any way. I contacted my credit counselor immediately following the call stating that no proposal had been accepted. I was assured that a new one would be sent right away to them.

That same week, I received yet another call from NextCard demanding money because I hadn't paid any to them the first time they called. I explained the credit counseling issues, and was told the same story as the first call I received. I was pushed to make a payment over the phone with my checking account, and I had to refuse because my account had insuficient funds in it, and I was unsure I would have money in it when they wanted it. I was offered a postdated payment option, but still refused because I didn't want to have them draw money that wasn't there. A third call ensued only 3 days later. The same thing was said to me, and the same things were told by me.

I explained my frustration about how it had been now almost 5 months on the credit counseling plan, and nothing had come of it yet. I told about how it upset me that the other 3 creditors never gave me any problems with going through debt consolidation, and that I was very unhappy all around about the situation. I was told that the person was calling from the Collections department, and I would have to resolve the issue with Customer Service. I postdated a payment this time, just to avoid any more phone calls. I emailed Customer Service right away and explained my frustration over the whole deal, and how it was unfair to me that because they "misplaced" the proposal, I was still getting overlimit fees and was not getting ahead in my effort to eliminate my debt.

I wanted answers about my options, and I wanted to know that they would do something about all of this for me. I received a reply 2 days following, which, much to my dismay, told me I would need to contact the Collections Department, and gave me their phone number. I had been told by Collections to contact Customer Service, and now Customer Service is telling me to contact Collections?! I wrote them back explaining I was told to contact them, to which I have yet to receive reply. I cannot believe that due to no one's fault but NextCard's, I am being slapped with fees every month, and not being able to get ahead on my debt, which is the main purpose for going through credit counseling.

I'm sure that even after things get straightened out (provided they ever do), that NextCard will not offer to do anything about this mess except for eliminate any future overlimit fees. Their disorganization is costing me money, and I don't feel that it's fair. NextCard has caused me nothing but problems ever since I decided to do something about my debt and get help in clearing it. If you own a NextCard Visa, or are planning on obtaining one, be prepared that if you ever get in over your head, there's a good chance they will cause you problems as well.

Dennis of Alameda, CA, writes:
I applied for a NextCard on line. In the process of completing the application I realized that there was going to a $9.95 charge for a personalized card. I tried to back out of the application and I felt that the application process was not completed. However, the staff at NextCard tell me that because the application session showed me the screen "Congratulations, you have been approved", that my transaction was complete and irreversible at that time.

The reason I had tried to back out was that I knew I would be away from my address from an extended period of time and didn't want an immediate billing. In any event, unknown to me, NextCard, issues a bill for $9.95, then on the second month they charged me a $29 late fee, etc. By the time I picked up my mail, the total fees I owed NextCard was close to $100. I immediately called to cancel, asked that the charges be reversed since my user experience with the NextCard online application left me with the feeling that the application was not completed and that I was being charged in error. On my first call, they cancelled my card but refused to reverse the charges. Subsequently, although my account was closed, they continued to charge me $29 late fees. It took a second call from me to get all charges reversed. A supervisor however said that the reversal was made in error that they normally would not make such a reversal.

Additionally, NextCard has placed a default notice against my credit record and refused to take any action to let me add my side of the story to the credit bureau (or to make any effort to remove what I consider a false report against me). I feel that as a result of an inadequate user interface and very tricky (but probably legal) set of screens, I was induced to incur a $9.95 charge which then expanded to close to $100 through late fees for something that I never considered I had bought.

Douglas of Anaheim writes:
I just wanted to inform you of the newest type of sneaky wording going around concerning those internet credit card offers. Notice the subtle change of words. Instead of pre-approved ... check out this email sent to me.

Congratulations! You've been pre-selected for this NextCard(r) Visa(r) offer with rates as low as 2.99% Intro or 9.99% Ongoing APR! NextCard(r) Visa(r) is the best credit card you'll find, period. We're the only credit card company that will tailor an offer specifically for you with APRs as low as 2.99% Intro and 9.99% Ongoing. Then, you can transfer balances with one click and start saving money right NOW. Get a NextCard Visa, in 30 seconds! Getting a credit card has never been so easy.

1. Fill in the brief application
2. Receive approval decision within 30 seconds
3. Get rates as low as 2.99% Intro or 9.99% Ongoing APR and no annual fee!

Home | Rogues Gallery | Good Guys | Complaint Form | News | Recalls | Search
Consumer Resources | Find A Lawyer | Newsletters | Forums | Contact Us | Advertise

Consumer Affairs.Com is provided by ConsumerAffairs.com, Inc. in association with Joan E. Lisante LLC, licensed to practice in Virginia and the District of Columbia and the Law Offices of Horwitz, Horwitz & Associates, Ltd., licensed to practice in Illinois.  ConsumerAffairs.com is an independent service not affiliated with any government agency.  For more information see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright � 1999-2001 ConsumerAffairs.com Inc.  All Rights Reserved.