Complain about a product or service

Fleet - Rate Changes

A class action suit filed in late 2000 charges Fleet with using deceptive practices in peddling its credit cards. Reading these complaints, it's not hard to see how a reasonable person might leap to that conclusion.

Robyn of Las Vegas writes (2/16/01):
In December 1999, I was sent a prequalified offer to open a Credit Card Account with Fleet Platinum MasterCard at 7.99% fixed rate based on my credit report. I transferred balances from some higher rate cards to get this lower, supposedly fixed rate. I say supposedly because in July of 2000 I was sent a notice of Change of Terms in which they stated that they were raising my interest rate to 28% + prime which somehow came out to being charged 33% in September!

In the initial offer it said that the terms would not change unless you make a late payment. I contacted the customer service department on several occasions to find out why they increased my APR. I was sent a letter stating that it was because the "portion of revolving credit balances to revolving credit is too high" and "delinquency recently or in the past reported on account(s)."

In the offer they say that the rate will change to variable if you are late with a payment, not because of the reasons they are giving me. They suggested I contact the credit bureau for a copy of my credit report. I did just that. It took over a month and I received a report showing no credit near its limits and one instance of a late payment of over 30 days, on a credit card that showed the highest balance being $142. I never have been late on any credit cards and I found out that this was a card that had been stolen with a disputed amount and had been closed. Also any activity was before I received this Fleet offer so it was on my report when they offered me this account.

I called the Fleet customer service stating this on February 15, 2001 and I was told by a representative that just because it is a fixed rate doesnŠt mean it can't change. What? How can this be? Then what does "fixed" mean? She told me that most people who received this offer are now at a higher rate and that "hardly anybody still has the 7.99%." Apparently, there are others in the same boat as me.

Then she told me that I had been near my limit on their credit card, saying that 80% of my limit constitutes "close." Originally I was encouraged to transfer balances from higher rate cards, for up to my credit limit, because of their "low rate" and then later they can change the terms because I did? I canŠt believe it. It does not say this on the initial offer. I asked to be refunded the amount charged to me over the 7.99%, close to $300 in a little over a month. They refused but said they would be happy to lower my interest rate to 18.9% on my future balances. I was incensed! I got so mad I cancelled the account altogether. What can I do about this situation ? There must be something wrong with this.

Donna of Lincoln, CA, writes (2/9/01):
We got the credit card to do a transfer balance for a introductory low percentage that would be raised to 9.5% after a certain amount of time. After nine months of paying on time and above the minimum amount due, they raised our rate to 19.92% because they said they did a credit report on us and got some unfavorable reports. We had some problems five years ago for one month but nothing since then. They said it didn't matter that our payments had been on time, or that we had paid more than the due amount, what matter to them was that five years ago we were late on some other bills. This is not right and they shouldn't be able to get away with this kind of underhanded practices.

Maria of Oregon City, OR, writes (1/19/01):
I received a invitation letter from Fleet in Sept. 2000 to open an account with them and receive an introductory rate of 0% interest until July 2001, and thereafter a 10.99% fixed rate. When I called to inquire about this offer, I was asked to complete an application by phone, which I did. At the end of the conversation, I was told the rate would be 10.99% interest on the balance transfer that I had requested. I explained I had read their invitation letter to extend a rate of 0% until 7/01 and was not interested in a rate of 10.99%. I explained I would prefer to shop around and thought I could obtain a better rate elsewhere.

I was amazed on October 10,2000 to receive a letter from Fleet telling me they had paid $8,100 to MBNA on my behalf and welcoming me as a new member. I immediately contacted them and was told to write a letter cancelling the account and requesting them to stop payment on the check to MBNA. I did so on October 11. In addition, I sent a letter to MBNA requesting they refund the $8,100. to Fleet and explained I had never authorized Fleet to open an account in my name or pay that balance. MBNA replied that they could refund the money to Fleet but would have to increase my rate to 19.99% as that was their policy.

On 11/27/00, I received a letter from Fleet acknowledging my correspondence with them. It apologized for my dissatisfaction but claimed since they had made payment to MBNA on my behalf, I now must make payments to them. I believed they were forcing me into a business relationship with them and wanted to ascertain my rights and the best way to proceed. I contacted our state attorney general's office of consumer complaints and was subsequently referred to the US Office of the Controller of Currency. I provided them with documentation and written explanation of my situation. They contacted Fleet by mail on 12/5/00 and have yet to hear from them.

In addition, my home has been called up to 4 times a day by Fleet representatives requesting payment on the account. I was advised by the Controller of Currency to request Fleet to stop calling our residence by certified mail, which I did. I continue to receive calls and was told by the last caller named Jim Stanger that Fleet would continue to call despite the letter requesting they not call. He said he didn't care when I informed him he was in violation of the Fair Debt Collections Practice Act. Today, in the mail, I received a letter from Fleet explaining that they would cease and desist with calling my residence as per my request but they would continue to report me to the National Credit Bureaus as delinquent.

As I understand the law, disputed charges are not to be reported until the dispute is resolved. I contacted the Oregon State Attorney General's Office division of consumer affairs and was told that is correct, and that Fleet was violating the Fair Credit Reporting Act. They also suggested that I may need to contact my own attorney regarding the matter. The United States Office of the Controller of Currency is the authority over Fleet and they have until the end of January (29th) to render a decision regarding this matter. I would like to resolve this but want to protect my rights and credit report, which until this date, has been immaculate.

On May 5, Maria gave us an update:

After countless correspondence and phone calls, I have finally resolved my dispute with Fleet. The United States Comptroller of the Currency intervened and contacted Fleet on 3 different occasions to hear their side of the story. Fleet did not respond initially but when the deadline neared, a vice president of Fleet Bank, Ann Block, wrote a letter.

She claimed on behalf of Fleet that Fleet was merely following my instructions but that since I was unhappy, they would reverse the outstanding late fees and interest charges to the initial amount they had paid off MBNA with. By this time, the account had been turned over to a collection agency which was now contacting me since I had written to Fleet and requested they stop calling my home regarding the account.

The collection agency stated I must make payment to them now and not to Fleet. It was my understanding that according to the Fair Debt Collection Practice Act, a account in dispute was not to be turned over to collection. I also wrote to the collection agency and asked that they stop calling our home since the account was in dispute. I sent it certified mail, return receipt requested. I received the signature postcard back as proof that the collection agency had received my request.

I still received calls from this agency and when I told them they had received a letter by certified mail requesting they stop calling my home, they demanded to know who had signed for the letter at their office. The signature was unreadable, I could decipher maybe one letter of the name. They then requested that I fax them a copy of the letter and the signature card from the certified mail. I did this at my own expense.

After receiving a copy of the letter Ann Block had sent to the Office of the Comptroller of Currency, I contacted her by phone. I live in Oregon and it is legal to record phone conversations initiated by a resident of Oregon. I did record the phone call with Ann Block and asked her specifically: where to send payment of the initial amount they had paid to MBNA, would this account be reported negatively on my credit report and asked if she had access to the recorded copy of my initial phone conversation.

She told me that she had been told by the customer service department of Fleet that the application had been made by mail and not by phone. I then asked her if she had asked Customer Service for a copy of this application. She stated that they had not yet been able to locate this application. I told her I would be interested to see a copy of the application when and if it does surface.

I have yet to receive a copy of this application. Probably because it doesn't exist. I wrote then to the Comptroller of Currency and explained that while I appreciated their help in this dispute, the fact that Fleet had taken action to force me into a business relationship with them was never addressed. Fleet would not ever admit any wrongdoing and took the position of merely trying to placate me since I was an unhappy customer. I did pay off the initial balance with Fleet and concluded my relationship with them.

I sent a copy of the payment check to the collection agency additionally as well as a letter explaining my instructions from Ann Block. I recently had a loan approved and am not aware of any negative information on my credit report. However, I would never consider a business dealing with Fleet.

Ann Block was helpful and polite but it took me five months and probably 40 hours of work to contact a "real" person at Fleet with some intelligence and knowledge. I would advise anyone with similar problems these points.

1. If you live in a State where it is legal to record phone conversations, record every conversation you have with a credit card company. Radio Shack has equipment for a reasonable fee and can instruct you Linda Tripp style, in how to use it. This is especially important with the application and any terms you agree to. You may need to notify the other party that you are recording the conversation to make it legal. In Oregon, you do not.
2. Pay attention to the address on any bill that you dispute about where to send correspondence. DO NOT CALL. Calling does not preserve you rights. A lawyer told me that the credit card companies routinely use small print and colored ink to make the address for correspondence difficult to see for elderly or rushed people. Protect yourself.
3. Send every letter to the company by certified mail, return receipt requested. Even if it is addressed to a post office box, the carrier can sign that he or she placed it in the box and you now have proof you correspondence was received by the company.
4. Read the pamphlets and information available from the Federal Trade Commission. It outlines your rights and laws pertaining to your situation. Many times I had to quote the laws to the Office of the Comptroller of Currency regarding Fleet's obligations to respond under the law.
5. Perseverance, perseverance, perseverance. I wrote a total of 36 letters and spent numerous hours on the phone regarding this situation. There was a lot at stake and I hung on until it was resolved. I never did get Fleet to admit their wrongdoing but did get the account settled for the original amount and have no negative information on my credit report. Further, if anything shows up negatively on my report, I have a recording from Ann Block, vice president of Fleet, claiming they would not report any negative information on my credit report as long as I paid the initial amount they had paid to MBNA on my behalf.

I have a good relationship with MBNA. I would recommend them because of my positive dealings with their customer service department followthrough on their claims.

As a side note, a consumer law attorney that I consulted with stated that these kinds of events are becoming more common. Although there are laws in place to protect consumers from unethical tactics by credit card companies, there is virtually no enforcement of the laws. The credit card companies lobby heavily in Washington and the teeth of these consumer laws have been softened. Essentially, our leaders have sold out to big business. I intend to contact my local congressman with my story and question his or her position on consumer protection laws.

Grace of Roselle Park, NJ, writes: (12/9/00):
On Oct. 30, 2000 I received my Fleet credit card statement. My husband and I decided to pay off the balance and close the account. I mailed the check on Oct. 31, 2000 and my cancelled check showed it was cashed on Nov. 2. On Dec. 1, 2000 we received a statement that showed a balance of $46.91 with an interest rate of 27.64%.

When I called the customer service number I spoke with a very nasty representative. She said that the charge was for an account transfer that we weren't charged interest on the first month. When I questioned the high interest rate she very rudely told me that was because I closed out the account. Since then I have spoken to other people who have had similar experiences with Fleet.

Payment was made and a lesson was learned.

Phil of Rockland, MA writes (11/24/00):
I applied for the Low Fixed Rate that Fleet Bank was offering at the time to transfer balances and reduce my interest rate. I was told when I applied that it was a fixed rate and it wouldn't change for the life of the card. Around August I noticed that my interest rate had changed, without warning, to a rate of 10.5%. When I called the customer service of Fleet, they told me that the rate wasn't for the life of the card but it changed as the interest rate changed and they do not control the interest rate, the gov't does.

I'm now paying twice the interest a month that I was paying originally because of the raised interest rate. I feel that if Fleet bank couldn't keep up their end of the bargain, then they owe me at the very least the extra interest I've paid them the past several months after they changed the rate.

Kim of Norcross, GA (10/12/00):
I signed up for a 7.99% FIXED rate card. I just received a statement with the rate increased to 15.97%. I called Customer Service and "Carlos" said they had pulled my credit report and found negative information. I asked him what and he said they couldn't tell me. Then I called and asked to speak to a supervisor, Ruby, who told me they could change my APR every month if they wanted to. I told her that was not a "fixed" rate then. She said it was all in my Cardholder agreement. I told her I would have never used the card had I known of this practice. She also told me they never pulled a report, but that they could do so anytime they wanted as well. She was quite rude and unapologetic. I have never been late and have always paid more than the minimum payment. This is how they treat their customers? Now I just got a letter stating their late fee was going from $29 to $35. Why do companies get away with this?

Jason of Forest Hills, NY, writes (7/24/00):
I opened up a credit card account with Fleet at a 7.99% "Fixed" Rate last year. Last week, I received a new terms and conditions of the card stating my rate was being raised to 16.32%. This stinks, but I knew they'd screw me over one way or the other because my rate was too low. Anyway, I called up assuming I had, like with other cards, a 30 day period to reject the new terms. Fleet informed me that since they were based in Rhode Island, they were not bound to offer me that 30 day window. So I then said I'd close the account. They said they'd raise my rate to 26.99% simply for closing it. My only option is to pay or transfer the balance by 9/1, when the new terms go into effect. I feel this is completely ridiculous and a rip off, and I am sure many other people feel this way.

Todd of Marlboro, MA, writes: (4/26/00):
Fleet Bank sent me an application for their credit card. They indicated in the brochure that interest rate on outstanding balances was fixed APR of 7.99. So I applied for the credit card and got accepted about 6 to 9 months ago. As of April 24th, 2000 they sent me a letter informing me that the interest rate wa increasing to over 15% as of June 1th 2000.

MY COMPLAINT IS THEY FALSLY ADVERTISED THEIR CREDIT CARD. To me a fixed rate indicates that the interest rate should never go up unless you fail to pay the minimum payment. So I called Fleets tech support and they were no help to me. They just indicated that since interest rates were going up that they had no choice but the raise the APR on the credit card. Also please note if someone applies for a new Fleet card the interest rate is about 10% on outstanding balances with an intro rate of 2.9%. However it appears they changed the policy indicating that the rate could go up.

Mary of Dania, FL, writes:
I signed up for the Fleet credit card about a month and a half ago. I only signed up with it for the low interest rate, and had only used it for a transfer of funds to pay off another card I had with a higher interest rate. Anyway, I never called to have the card activated because I never planned on using it. Also the only time I called the company was to have my due date changed from the 16th of the month to the 27th of the month.

On my statement I recieved this month, November, (my 2nd statement so far) there was a charge for $79.95 for a puchase from MWS Connections. I never even heard of this company let alone bought anything from them. As I said I never even activated my card. When I called the credit card company I was told I would have to call the MWS Connections to ask about it. That company told me that I had to have hit the number 2 while I was calling the credit card company to change the due date, and when I hit the #2 on the phone it automatically signed me up for this discount service (I believe it is).

When I told her I was very upset about this, and I don't care what number I inadvertently dialed I don't want the service, she then laughed at me and said there was nothing to get upset over. I said I think getting a bogus charge for $79.95 is something to get upset over. She said that the charge would be reversed in the next billing cycle. I think that it is wrong for these people to get away with this. I did not dial a wrong number, and the credit card company admits that they are affiliated with this company. I wonder how many other people accidentaly got signed up and never noticed the charge on thier bill.

Micki of Racine, WI, writes:
In January of 2000 I entered into a credit card agreement with the Fleet Bank. The contract was with their platinum card which offered a 2% cash rebate of all charges and no anual fee. Both of these agreenments were spelled out in the cardholder agreement.

In my last statment I found I'm being charged an annual fee of $35. When I called the credit card company they said they can change the agreenment anytime they want. I asked about my rebate check for 2% of charges I made. They informed me they also changed this agreement and are no longer responsible for this agreement.
The consequences up to this point is the amount $132.48 in rebate money due to me per the cardholder agreement. The annual charge of $35 is also an unwarrented expense.

Brandy of Virginia Beach, VA, writes:
I signed up for a Fleet credit card July of last year for a rate at 7.9% fixed, not an indroductry rate, a fixed rate, no changes. This month I realized that my intrest rate had changed to 19.2%, so I called. The girl I spoke with said I had an introductry rate and I argued with her and told her I wanted my orginal paperwork then because I know what I signed up for.

Then the girl said, "No, I was wrong. They changed your rate because of your bad credit."

I could not believe what I was hearing. I have perfect credit, not a blemish at all on my report. The girl then told me what I had to do and I thought to myself this is going to take me forever to get fixed! So tonight I pulled my husband's and my credit report -- and both were outstanding, nothing wrong with them. We both together make over $70,000. a year.

When we got the card our credit was the same it is now. For one year we had a rate of 7.9 % on $10,000.00 card which we put everything because of the rate. The card just renewed this July and I just found the change this month (August). The girl on the phone said she was sorry that we did have the fixed 7.9 rate but we lost it because of our credit.

When I pulled my report, the first time Fleet credit card pulled my report was on 07/23/99 and my report shows who all has pulled my report. Fleet told me they changed my rate because of a recent report but when I look at it they have not even pulled a new report.

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