Complain about a product or service

First Premier Bank

The offer looks pretty good. "Your Gold MasterCard is Pre-Approved! 9.9% APR Fixed" the envelope shouts. Inside is an effusive offering that rattles on about the "premium benefits" and the attractive 9.9% fixed rate. For those with shaky credit, it sounds good -- no security deposit or savings account required.

Ah but wait -- what are all these fees on the disclosure statement?

• Account set-up fee: $29 (one-time fee)
• Program fee: $95 (one-time fee)
• Annual fee: $48
• Participation fee: $72 annually
• Additional card fee: $20 (if applicable)
• Transaction fee for cash advances: Greater of $5 or 3% of the cash advance

Oh but wait, there's more. There's ...

• Credit limit increase fee: $25
• Return item charge: $25
• Auto draft charge: $5/$9 per draft
• Express delivery fee: $25 for cards sent Express Mail
• Copying fee: $3 per item
• Internet access fee: $3.95

This almost looks like a satire -- as though someone sat down and dreamed up as many fees as possible for comic effect. Program fee? Participation fee? Account set-up fee? Since when are these normal credit card charges?

Just to prove it's all heart, First Premier doesn't charge the whole $72 participation fee upfront, it parcels it out at $6 per month. Even so, as we add it up the start-up fees would be a minimum of $178 and possibly more if the mysterious copying fee, Internet access fee, etc. were added on.

The kicker to this ludicrous scenario is that the letter gives no hint what credit limit the consumer has been "pre-approved" for. Those we've heard from have had limits of as little as $300. With a few hundred dollars worth of upfront fees, that doesn't leave much room for error. Naturally, if the account is delinquent for two consecutive billing cycles two times in any six-month period, the 9.9% interest rate suddenly becomes 23.9%.

Here's what Premier's customers say:

Bettye of Austin, TX September 24, 2008

Bettye of Austin TX (09/24/08)
I got a phone message. I could not understand which bank card was calling me. I returned the call and I kept getting a message asking me to enter my social security number, which of course I wasn't going to do. I finally got thru to a real person, who again asked for my social security number.

They could give me no information using my name so I refused and then looked them up on the internet and this is one of the options I found. I wasn't willing to give out my social security number

Gloria of San Francico, CA September 23, 2008

Gloria of San Francico CA (09/23/08)
I applied for a credit card - it came in the mail today along with a separate evelope from them which enclosed a bill for 180.59. I called to explain that I did not want a credit card that required me to pay before I even used it they offered to credit me only 40, but told me I was required to pay the remainder of the bill.

I did however see a disclaimer on the Contrct that states the following: Effective Date: This Contract is effective upon the earlier of (A) the first purchase mde or cash advance taken on your Credit Account and (b) the expiration of 30 days from teh date we issue the Card to you. You are not obligated to pay any fee or Finance Carge until this Contrct is effective.

The Charges breakdown on my statement dated 9/16/08 are as follows: 9/12 Program Fee Finance Charge 95 Accoutn Set up Fee Fiance Charge 29 Monthly Servicing Fee Fin Charge 7 Annual Fee 10/08 through 9/09 49 Premier Credit Protection at 890 [per 100 1.59 Totalling 180.59.

Finance charges and annual fee charges totalling 180.59

Miriam of Canton, MS September 16, 2008

Miriam of Canton MS (09/16/08)
i applied for a credit card with this company and was told i was approved with no further explanation. i received the card with a 300.00 limit. they billed me along with the card for 179 in initial fees. i have called their toll free number repeatedly and the customer service prompt does not allow you to speak with anyone. i have no way of cancelling the card and do not want to do business with such a company. i would never pay 179 for an initial fee. i have great credit and thought this was a reputable company.

a fee of 179.00 that i should not have incurred that will be jeopardizing my credit score

Debbie of Clermont, FL September 15, 2008

Debbie of Clermont FL (09/15/08)
I scheduled a payment to my credit card on September 5 for 100. On September 10 I made another payment for 100. According to my bank institution both payments were successful and they gave me the trace numbers. However, my credit card company only posted the September 10 payment for 100.

I have been trying to communicate with them to no avail. No one answers the phones, all I get is a machine. I've been on the phone waiting for customer service for more than 20 minutes. All I want is my money credited to my account as it should have been.

Keren of Corona, NY September 11, 2008

Keren of Corona NY (09/11/08)
This credit card charges for payment over the phone and online payments. On thursday september 11, 2008, I received a phone call staying that since I was late for the first time in my history with them, I needed it to pay the complete balance over the phone. They were trying to force me to pay over the phone even when my payment is due on September 30th. The representative told me I had no other choice because my payment was late. I ask to speak to the manager Kim and to the representative Connie who was very demanding and told me all my rights were gone because of a first time late payment.

I have to pay over the phone 50.00 plus the 11.00 they charged. My account is delinquent and they report me already to the credit bureau not giving me a second chance. I am currently unemployed and its been difficult to make my payments yet I always try to make the minimal payments due with them. The extra charges made to my credit were unnecessary.

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