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Direct Merchants Bank

Preying on the Disabled

Direct Merchants Bank •Application Fees •Change of Address Policy •Collection Policies •Customer Service •"Credit Protection" •Interest Rates •Late Fees • Late Posting of Payments •Over-Limit Fees •Preying on the Disabled • "Rate Reward" •Secured Credit Cards •Security Policies •Disappearing Funds •Telemarketers •An Insider's View

On Oct. 2, 2000, Daoona of Whittier, CA, wrote:
My daughter Danna, had an account with Fingerhut. They turned their accounts over to Direct Merchants Bank. When D.M.B sent her the information application they requested the limit on the card we wanted. We put $500 as my daughter is developmentally disabled and on SSI. The rest is history. With service charges and add-on's to her account, the balance is about $4,600.

For some reason the payments went up earlier this year from about $50.00 to $113.00. I had to call them to remove her from the phone soliciter list as they were putting things on her card that were not authorized -- taking advantage of her disability. Their records only go back about a year, no telling what was put on prior to these things added on this year that they did remove from her balance. I have no idea how the balance got so high as there was only about $2000 on the card charged by myself and her.

I have just gotten off the phone with their payment center as I wanted to make a payoff settlement offer to close the account and they advised me that it is "D.M. policy not to make settlement payments". She cannot afford the payments of 113.00 a month and neither can I, as I am on early Social Security retirement myself. This is causing great mental hardship for me especially as my condition has to do with stress. I feel my daughter was taken advantage of because of her disability as it was obvious from credit reports and her income that she made little money. THIS REALLY IS A CRIME.

On Oct. 22, 2000, Lloyd of Hersey, MI, wrote:
My father, a senior citizen with a hearing problem, was contacted by phone in August about getting a credit card from Direct Merchants Bank. For whatever reason, the solicitor convinced my father to get a credit card. It arrived a short time later. He, my father, called to activate the card as instructed in the information that was sent with the card.

Thinking that he would only use it if an emergency arose, he put the card in his wallet and thought no more of it until a statement came in the mail in October of this year. This time lapse was about a month and a half. The statement says he owes them $432.99 and he hasn't even used the card for anything.

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