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First USA - Fees

First USA Bank • Rapidly rising interest rates • Late & overlimit fees • Unauthorized charges • Charges on phantom cards • Misapplied payments ___ • First USA Pays $1.3 Million in Deceptive Practices Case

Helen of Petaluma CA (4/1/03):
Over the past few months we have been paying off our credit card bill. We are being charged 19.99% interest because of 2 late payments. On March 7th I paid $3,250.00 on the balance that was owed. They charged me an additional $29.00 for overlimit fee. I have not been using the card for months and yet have always been over the credit limit. Unfortunately, it was their fees (numerous) that kept on putting me over the limit.

I've called many times and got the run-around. I last spoke to a Shanon G. who told me that it was their policy that during the billing cycle if the account is over even by a penny -- the overlimit fee is still applied. I think this is a sham!

Susan of Menifee CA (10/28/02):
At the end of 1995 my husband and I filed for bankruptcy. I wanted to keep at least one of my credit cards (First USA Bank) so I sent them a request to keep my account with them open. In return, First USA Bank accepted my request but with a change in my account. My credit limit was reduced from $8,000 to $4,000. At the time my balance with them was about $7,000. With the change in my account I was considered by First USA Bank to be "over the limit" and therefore subject to a penalty fee of $25.00 every month as I was unable to pay the amount needed to bring the account under the limit.

Every month when I would get a statement from First USA Bank I would have to call them up and dispute the "over the limit fee" and if I got someone who was understanding they would agree to wave the fee. Other times they were not so eager to help.

James of Melbourne FL (9/24/02):
Right after accepting a First USA Bank credit card offer, I inadvertently made a charge which cause me to exceed my credit limit. They imposed a $39.00 overlimit fee as of that date, which I certainly understand. It was my oversight. Next, when that billing period closed I was still over limit so they imposed yet another $39 overlimit fee for the next billing period even though I had not yet been sent a bill containing the overlimit notice.

In effect, they ensure that you are billed a total of $78 for every single overlimit event because it is bound to span two billing periods. If you knew you were going over limit you wouldn't do it in the first place. The way you know is when you get your bill, but by then you are in another billing period.

The financial impact of exceeding the credit limit is very abusive and excessive. The company representative I called was not co-operative in even discussing the fee and told me if I had done a better job of managing my finances I wouldn't have this problem. Very poor and infuriating customer service attitude.

Melonie of Bellevue WA (6/16/02):
First USA Bank issues monthly credit card bills so late that they arrive after the payment due date. Because of this my payment was late, and I got charged late fees and additional interest charges. The bills are sent without a postmark so the consumer has no proof of the date the bill was mailed. When I wrote to complain, they did waive my late fee on the next bill, but blamed the Post Office for not getting my bills to me on time. They then encouraged me to use their online payment system. Who knows what they charge for that?

I asked that my billing date be changed. All that did was change the date the payment was due, but it did not change the late bill arrivals. Month after month, bills arrive late and I get charged outrageous late fees and interest charges.

Sheri of Denver PA (3/10/03):
Me and my husband have dozens of credit cards because all these places are so stupid to give you one. Anyway, we have a First USA that is over the limit. And the reason it is over the limit is because First USA. they let you charge and charge unit who know when. and Our interest rate is so high. We pay say 100 bucks and only $2 of it actually goes towards the bill.

We have been trying to pay it off like all are others one but do you think they would work with us. nope. They have NO customer service over there. And it makes up feel like a child.

Kenton of Ironton OH (9/3/02):
My wife and I had used a First USA credit card for a while and then decided to cancel it. I had been making the payments through the internet process up to that point. She called them by phone and told them she no longer wanted the credit card. They told her to cut up the card immediately so she would not accidentally use it again. She destroyed the card while on the phone with them.

I tried to log on and make a payment several days later and was denied access to any account information. I called them and explained to customer service the problem. I was told I would have to sign in again with the account information - including the security code found on the back of the card. I explained that the card no longer existed - as per their directions. I was told that was the only way that I could access the account was with the security code. Obviously that was not going to happen. My only option was to mail a payment to them.

I mailed the payment prior to the due date. Upon receiving my next months statement I saw that I had been assessed a $29 late fee. I called customer service and explained again that I was not able to pay them electronically as in the past and would they please waive the late fee. No chance. I asked to speak to a supervisor and again explained the entire situation. The supervisor refused to waive the charges. I mailed them a check for the full amount due - including the late fees - 5 days prior to the due date. I mailed the payment myself from inside our local post office - not a drop box on the edge of town - from Ohio to Illinois. I realize that 5 days was cutting it close but Ohio to Illinois is not unreasonable for mail to make it in 5 days.

The next month's statement (that I believed was paid in full) did not show any payment. I called them to verify this and was told that the payment for the full amount was not posted to the account until 15 days after I had sent it. I explained that I personally had mailed the payment from the post office window and there was no rational explanation for it taking 15 days. Too bad - they now wanted another $29.00 late fee plus interest of another $25 plus change. I protested and told them the account was paid in full - they should not expect any further payments from me. The only advice that they gave was to pay it or suffer a bad credit rating!

I have called them again twice - they deny having any notes on the account about those calls - I have emailed them twice and gotten standard form letter replies that I may access my account info online (or I may call their customer service people) - In one phone call I bluntly explained that I had absolutely no intention of paying them another dime - this did not even appear on the account notes I have since been told - I have tried to be reasonable and work through this with them - even paid the late fee that I was assessed after the inability to pay by internet but they want blood!

Kenton illustrates the futility of trying to straighten out disputes by phone or email. He should have written a letter and kept a copy.

Diann of Wasco CA (11/11/01):
On Oct. 17, I received a bill from First Usa for 89.00, a 60.00 bill which was evidently due for annual fee at the end of September and a 29.00 late fee. I do not ever remember seeing the first bill and you can tell from my credit history that if I had seen it, I would have taken action on it. Deciding that we would probably not travel as much now anyway, I called to cancel my account (it is the type where you get 1 mile with United for every $ you spend).

The woman on the phone for First Usa said that we had really good credit history with a large available credit and we had been with them for such a long time (about 15 years), that we should transfer to a no fee card but retain our credit limit. I saw no reason not to do that. She said she would credit all fees and transfer to a new account without annual fees. Today, November 12, when I got my statement for the new card, the 60.00 fee was still there as well as a 29.00 late fee.

I called First Usa and was told that I did not call within the first billing so that I still owe the 69.00. I told her that in no way would I have changed to no fee card if I had to pay the fee anyway and I was not informed of this when I called. She said that the person that helped me the first time must not have known about the cardholder agreement but that the agreement did state that you had to call within the first month. I feel that this is unfair business practices. I had not used the card and was not expecting any bill from it.

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