This seems to be a bank that has a hard time getting things right and an even harder time responding to its customers' needs. It has no trouble jacking its interest rates and fees skyhigh though.
Reading all of this might make you wonder just what kind of bank DMB is anyway. Well, it's one of a handful of "credit card banks" -- so-called banks whose primary business is issuing credit cards. A recent class action suit casts a little light on this odd breed.
Here are a few of the more recent complaints:
Chris of Casper, WY March 10, 2009
Chris of Casper WY (03/10/09) Got a letter in the mail today telling me that my credit line had been reduced from 4500 to 320??? So I decided to give them a call. On my third try, and 50 minutes on hold, I got to talk to a human. All I wanted to know is why and if they could do anything for good customers like me. Well here it is. The why is that the economy is bad, and they don't want to do anything for good customers because there is a very small chance they might have financial trouble in the future. Unlike a few of you I was able to talk with a supervisor and this is what he told me. It sounds like a lot more people will be having troubles with them since they made this decision across the entire card line and axed everybody's credit limit to cover their bottom line.
Hopefully this does not hurt me much since I am in the middle of a refinance and looking to buy a car in the next six months. I will be getting a credit report before the week is out. I am done with them but my credit can't afford for me to cancel the card, but they won't make any more money off of me.
Bonnie of Rogersville, TN March 9, 2009
Bonnie of Rogersville TN (03/09/09) Direct Merchants Bank(R)Account issued by HSBC Bank Nevada, N. A. My card limit was 2300.00 with a balance of 194.97. Without any notice my limit was reduced to 660.00. I discovered this while checking my account on line, even though my last statement still indicated the 2300.00 limit. My statements were always paid on time and more than minimum always paid.
I emailed HSBC and received and finally received a written notice this week that it resulted from We recently completed a loss mitigation review on our Direct Merchants Bank (R) Mastercard(R)accounts. Whatever that means. I don't see how they can do this, but I guess they have the right to do anything without proper notice. Guess this was some fine print in the agreement??? I have always paid on time and more than minimum and my total of all my credit cards owing is less than 1200.00.
Robert of South Ozone Park, NY March 8, 2009
Robert of South Ozone Park NY (03/08/09) I applied for a credit card from directmerchants bank in june of 2005 and was approved with a credit line of 4,400.00 and within 2 years was increased to 5,600.00,I was always in great standings with never being late and always paid more than the minium,I used the credit card in january 2009 and when I received the statement I noticed my credit limit was reduced from 5,600.00 to 840.00 and for no reason and never was notified from the bank I think this is a disgrace and I wrote to the bank and as of today 3/8/2009 have not heard from them explaining way.
as of now no damage has been done but am worried how this will affect my credit rating with the credit bureau's
Donald of Waynesville, NC March 6, 2009
Donald of Waynesville NC (03/06/09) On February 28, 2009 when trying to use credit card it was declined for a hundred dollars worth of medicene. I knew I had an avaialble balance of at least 2500.00, and this wasn't even close. When I got home, pulled up account and to my surprise, credit limit had been changed and now I showed an overage that I need to pay immediately. Wow, no notification of any kind - customer service didn't respond back as to what happened and I was left in shock. Finally did get an answer in mail weeks later that my account limit had changed. Said I had been categorized - I've also placed them in a category.
Their business practices have me emotionally upset & very stressed, especially now during tough economic times. Here's what they do that I had no choice to play along with. I've had the card for many years and discovered several things. At first, sometime in late 90's or early 2000's, you could make a payment on-line and get instant credit. At some point, they figured out they could make more money by delaying the posting to your account by 2-3 days. So now, even if all other places where you pay bills on-line give you immediate credit for your payment, DMB does not.
They have it come due on a weekend, and then when it doesn't post to your account till Monday, oops -late fee. Even though your bank pulls that amount out of your available cash immediately when DMB shows it, and you are no longer getting interest or credit for that amount. But does Direct Merchants Bank? If they have a hold on it, or it's sitting in their account for 2-3 days waiting to get posted, are they able to collect interest on money with whoever they bank with. I'm sure they get interset on their bank accounts from someone, and using my money, along with hundreds, possible thousands more of people each month is a scheme, and they continue to get richer.
They not only late fee you when they've got a hold on your money, they're probably getting interest on your money in the mean time. This waiting to post is not practiced by any others that I'm aware of. They're ripping us off each month by putting that money in limbo (bet it's their limbo)waiting to post to your account. Now for an extra 15, they can do an immediate payment. So they could give you instant credit - you pay it, the money's got a hold on it or already gone, and they sit on it for 2-3 days. Who's collecting fees and why do we not get credit for any? Massive scheme/scam going on at Direct Merchants Bank.
Phil of Tulsa, OK March 6, 2009
Phil of Tulsa OK (03/06/09) On 2/21/09 accessed my acct in response to an email I sent asking why I had not been notified of a 7.000 decrease in my credit and increase in intewrest rate. While on my online acct site I scheduled a payment due the 28th. On 03/04/09 I recieve another email and that I'm past due. I think somebody at DMB read my strongly worded email an decided deleted my payment and record thereof. Just so happens that along with the decrease in credit limit and a past due which then added a late chg which in turn put me over my credit limit thus another fee. What a bunch of greedy predators. I can't believe when CA people read what they do to all the people on here complaining for various reasons that Consumer Affairs Class Action Attorney's haven't brought lawsuits against DMB.
What DMB does can't be legal, so why so timid CA Attorney's. Who the hell is going to put a stop to their underhanded shenanigans, who's going to protect us and care what happens to us we have no leverage with DMB which is sad all the way around.Credit Card issuer's are now the most arrogant, predatory greedy along with Wall Street. I've now paid them 100.00 and returned 150.00 worth items the 03/4&5/09 credited to my card and I'll bet my balance has gone up. It just ain't right!
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