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Harold, an alert reader sent us the pitch from something called Net 1st National Bank and the complaints have been rolling in ever since.
PUT CREDIT WOES BEHIND
Net 1st National
Having a hard time getting your first credit card? Tired of explaining
past credit problems? If so, it's time to sign up with Net 1st National
Bank. You can establish or re-establish your credit with us, and have
access to fast cash at over 463,000 ATM's. Put credit card woes behind
you and step into summer with a new credit Card in your pocket from Net
1st National Bank! What are you waiting for? Get approved NOW!
So I thought I would investigate it. When I went to the above URL I was
sent to the following URL
http://www.1st-netcard.com/dollars/1775/19/101/index.html?sourceid=
What really peaked my interest is their terms and conditions.(Below)
What a way to end up $600 in debt for nothing!
Thanks, Harold. We agree. Anyone accepting this offer immediately is up the limit on their credit card and almost certain to fall immediately behind, thus accruing interest, penalties, etc. and being $1,000 in debt in no time. More consumers need to read the fine print. The excerpts below -- especially the fee schedule in the last paragraph -- would be a good starting point.
Terms & Conditions
Net 1st National Bank KFS MasterCard® Program. A refundable $500
Reservation
Fee is payable to KFS (the "Reservation Fee") in connection with the
opening
of your account. The Reservation Fee will be charged to your credit card
account and will fully utilize your initial $500 credit limit. Before
you may
use your card or account to make purchases or to obtain cash advances,
you
must make payments on your account. The difference between the total
unpaid
balance and your credit limit will be the amount of credit available to
you.
Reservation Fee Refund Policy. This program is offered through Key
Financial
Systems, Inc. ("KFS"). KFS is not affiliated with Net 1st National Bank,
the
issuer of the Net 1st National Bank MasterCard®. If you choose to close
your
account, the KFS Reservation Fee refund will be credited to your
MasterCard®
Account. If the posting of the $500 Reservation Fee refund results in a
credit balance, the credit amount will be refunded to you.
Renewal Criteria. Net 1st National Bank will renew your KFS MasterCard
account for successive one-year periods until (i) you direct Net 1st
National
Bank to close your account, or (ii) Net 1st National Bank otherwise
closes
your account in accordance with the terms of the Cardholder Agreement.
Graduation Criteria. After 24-months, Net 1st National Bank will review
your
KFS MasterCard account for a new standard, unsecured MasterCard Account
based
upon the current bank policy existing at that time. In order to qualify
you
must avoid taking any action, or failing to take any action on your KFS
MasterCard account that causes you to be in default under the terms of
the
Cardholder Agreement. This includes but is not limited to: (i) You must
have
made all your monthly payments on or before the due date; and (ii) Your
credit card account must not be overlimit at the time of your graduation
review; and (iii) You have not become the subject of any insolvency or
bankruptcy proceeding.
Acceptance. Your credit card account will be opened by Net 1st National
Bank
of Boca Raton, Florida. Use of the card issued in connection with your
account will confirm your acceptance of the Terms and Conditions of the
Net
1st National Bank Cardholder Agreement that will be sent to you along
with
your Welcome Letter. You agree to be responsible for all charges to your
account according to the terms of the Cardholder Agreement. You
understand
that the terms of your account are subject to changes as provided in the
Cardholder Agreement.
MEMBERSHIP FEES
ANNUAL FEE*: $96 PER YEAR
*The Annual Fee is payable monthly, $8 per month.
TRANSACTION FEE FOR PURCHASES : NONE
TRANSACTION FEES FOR CASH ADVANCES: THE GREATER OF $2 OR 3%
Application Processing Fee (a one-time non-refundable fee): $89.95;
$109.95
for a joint cardholder (if applicable). Net 1st will generate a one-time
electronic debit within the next business day from your checking account
based on the information you provide us with.
Refundable Reservation Fee: A $500 Refundable Reservation Fee will be
charged
to your credit card account.
Credit Card Fees: Transaction Fee for Cash Advances: the greater of $2
or 3%
of the Cash Advance; Late Payment Fee: $25; Over Limit Fee: $25; Check
Returned Fee: $20; Reinstatement Fee: $20.
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