Complain about a product or service

Providian

Providian • Advance Fees • Credit Repair • Destinations Unlimited • Disputed Charges • Interest Rates • Late Posting • Late Refunds • Late Statements • Promotional Rates • Credit Protection • Unauthorized Balance Transfers --- News • WaMu Buys Providian • $300 Million Providian Settlement • Providian Chairman Out, Stock Tanks • Providian Settles Class-Action Suits

Providian made its money the good old-fashioned way -- on the backs of the working poor. It built its business on what is called the "subpar" segment of the market, customers whose credit records have a few blemishes.

Only problem is, the losses outran the sky-high fees and soaring interest rates and the house of cards came tumbling down in October 2001 and by mid-2005, Providian had been acquired by the nation's largest savings and loan, Washington Mutual.

But from what customers tell us, things haven't changed much at Providian, as the complaints in this section demonstrate. Here are a few of the more recent beefs ...

Carla of Riverdale, GA August 20, 2009

In May of 2000, I was a single mother of three children and was forced to make a decision with my job, at the time, to work hours that would have kept me away from my children. My job informed me that if I did not work the schedule that they wanted me to work that I would have to consider another job. I was very concerned. I could not work 2nd shift because I had an infant and 2 children who were in elementary school. I had to leave my job because I would not have seen my own children between the time that they got out of school until after 11pm.

I informed a representative from providian that I wanted to take advantage of the credit protection that they charged me for when I was solicited by phone. I was told that I would need to provide a seperation notice or proof of unemployment. I told them that I was actively seeking employment and that the company would not provide me with a seperation notice because, technically, they did not let me go. They had hired a new supervisor and it was the new supervisors choice that I adhere to her schedule or she would find someone else who would.

I chose to leave because I am a mother first. My account limit was only 300.00. Each month, they continued to bill me and when I would contact the company they would give me the run around and phones would not be answered.

As time went on, I continued to be billed. I was out of work for a while and finally obtained a position at a hospital in between August and October of 2000. After 4 years or so, my wages were garnished (2/25/2005). I was provided by my payroll dept. with the cort order of a garnishment listing me as the defendant with an address that was not and never had been mine.

Providian and their Unifund CCR Partners set out to garnish my wages in the total amount of 2,548.05. They were deducting 225.00 every two weeks from my payroll. I could no longer afford to maintain my bills (rent, electric, etc.), not to mention, the needs for my three children at the time. I eventually had to leave my job at the hospital because I needed to be home with my children who were going into their teen-age years and I had worked night shift at the hospital for almost 5 years and my roommate at the time moved out.

In 2009, I was receiving child support for 2 of my children and had my child support direct deposited into a bank account that I shared with my father (who lived in NC). No later than 2 months of my child support going to the bank account, providian garnished our bank account and deducted my child support deposit.

Kathryn of Shawnee, OK August 13, 2009

In 2001, my wallet -including secured credit cards from Providian & Direct Merchants Bank- was stolen. I reported the theft immediately (same day) and provided the agencies with information on the police report. Luckily, I did recover my wallet, but it was only the beginning of the problem.

The original credit account was secured with a 500 limit. At the time of the theft, the balance was approximately 136, well under the balance fo the "securing" savings account.

In 2003, I began receiving mail from a collection agency. They claimed Providian had "charged off" my account and I now owed over 1000. I sent the collection agency the information on the theft. I did not hear anything from them again. Unfortunately, I assumed that would be the end of the matter.

In 2004, I received a collection notice from another agency. Again, I provided all of the information on the theft. Because the San Diego PD purges their files after two years, and on the advice of customer service people at Experian, etc, I filed another police report. I sent all of the information to the collection agency. (SDPD also informed me that more than my credit was stolen, and a missing person report had been filed for someone who was claiming my identity!)

Again, I thought the problem was solved. I did not hear from anyone regarding this account until this week (8/2009). I have had two telephone calls this week from a new collection agency, Accounts Receiving Management. I made it clear that I am not responsible for this debt, but would consider a settlement just so I could end it. I am just that tired of fighting it. I have done everything in my power to make sure that first, Providian was informed immediately of the theft and the card was cancelled, and, second, that credit reporting agencies and collection agencies have been informed and given copies of all of the information.

A collector "supervisor", Scott B, told me that I would have to pay over 500 to settle the account or hire an attorney because they intend to sue me. When I explained that I lost my job in December and would have to make payments, he told me that I would have to pay the full balance (over 1400!) in 3 installments. When I said I could not afford payments that high, he told me they would be seeing me in court.

In my opinion, having read other reports about Providian, I suspect that Providian jacked the charges up after I reported the card stolen. They are licensed thieves! I intentionally got a "secured" credit card with a limited balance to build solid credit. When I reported the card stolen and closed the account, I should have been due a refund of money from the "secure savings" because the credit card balance was far less than the limit. Instead, I now find myself facing a lawsuit for three times the account limit!

C. of Acworth, GA July 25, 2009

My bank account had been garnished 5,000.00 in July 2009. Frederick Hanna and Associates for Unifund CCR Partners assignee of Providian National Bank garnished the acccount. In June 2000 the OCC issued a report concluding that Providian had engaged in a pattern of misconduct in which it misled and deceived consumers in order to increase profits. The allegation against Providian included misleading consumers about the interest rates on their credit cards and promoting a “no annual fee” credit card that carried a mandatory 156.00 annual credit protection fee”. Providian agreed to repay consumers @ least 300 million to settle the allegations in the largest ever OCC enforcement action. (Just a little background on Providian)

C. of Acworth, GA July 25, 2009

My bank account had been garnished 5,000.00 in July 2009. Frederick Hanna and Associates for Unifund CCR Partners assignee of Providian National Bank garnished the acccount. In June 2000 the OCC issued a report concluding that Providian had engaged in a pattern of misconduct in which it misled and deceived consumers in order to increase profits. The allegation against Providian included misleading consumers about the interest rates on their credit cards and promoting a “no annual fee” credit card that carried a mandatory 156.00 annual credit protection fee”. Providian agreed to repay consumers @ least 300 million to settle the allegations in the largest ever OCC enforcement action. (Just a little background on Providian)

The economic and personal damage that it caused an only be considered as a nightmare. My house was foreclosed on and my family was left with no roof over our heads. I lost my job and became an independent contractor. I also have to pay these outstanding late fees on returned checks. As the sayings go, "if it were not for bad luck, I would have no luck @ all." I can only keep my faith and hope to wake up from this nightmare. I just want the monies returned to my account.

barbara of toledo, OR July 9, 2009

i wrote prevously about providian hounding me back in 1999 they have sold this account 3 times each time the accout gets bigger and bigger. i hve tried to make payment arraingments. but they dont want payments. they want the whole thing.now a new company has contacted me they are treating to take my ssi. i need help. pleaseeee. this was settled down from 1,500 to 400.00 now this new company wants 1,200.00 i dont have that. i cant even pay my medicene.

Isabel of coral springs, FL July 1, 2009

I got Credit Card through Providian almost 7 years ago. I paid completly when I refinanced my home in 2006. Never thought about it again. Now I have been hounded by calls from collection agencies stating that I owe them over 4000 dollars. And apparently they are suing me for the amount, along with a few charges being filed. What do I do? I'm not about to just give them money that I'm pretty sure I don't owe. What can I do, please help me, I really don't even have any money at this point. Thank you much

Marian of Miami Gardens, FL June 21, 2009

I receiced a providian card back in 1999. I fell on bad times back then single mom with two kids and today still struggling. F A Management Solultions claim that Providian contacted them to place a judgement on me in 2005. My providian card limit was 5000 - the judgement placed was 15,100 back in 2005 due to interest, court and attorney fees. (Which by the way the judge only had jurisdiction to grant up to 15,000)

Today, the amount is 20,000 due to the judge granting 7% interest to be accrued. I contacted the company to get the debt paid - at least 5000 because I don't own anything thats worth 20,000 - in fact thats my annual salary. They refused and want me to pay 13,000.

My question is how could a 5000 (years ago) credit card be that much. Where is the line drawn on how much a consumer can be charged for a bad debt. I think this is outrageous. If I was unable to pay that amount then how could I beable to pay triple now. I was never contacted by this company for the debt. They just let it sit to accrue interest.

Timothy of Round Lake Beach, IL June 8, 2009

I got what I thought was a "Pre Paid" Credit Card through Providian almost 10 years ago (give or take). I had to send them 300 dollars to get it. I think I used that card for a few months. Never thought about it again. Now I have been hounded by calls from collection agencies stating that I owe them over 1500 dollars. And apparently they are suing me for the amount, along with a few charges being filed. What do I do? I'm not about to just give them money that I'm pretty sure I don't owe.

Linda of Downey, CA May 14, 2009

I opened an account with Providian in 1998. I charged originally 300.00 dollars and never charged anymore. I just finally paid off the credit card in 2008. There were always strange charges on their that I didn't understand and when I would call, no one would give me a correct answer. As a matter of fact when I called to obtain the payoff amount, 3 different people told me different amounts. I believed I gave them a total amount of 4800.00 for a 300 dollar charges. That's pretty good. I never received anything on a class action suit, but I would like to be included.

Peter of Berkeley, CA May 4, 2009

I took out a Providian insurance policy and then got denied coverage on one of two accounts when I really deserved it due to disability. They used a technicality to evade responsibility for the second account which took an enormous amount of time to try to address, and added a great deal to the emotional distress that I was already experiencing due to my disability. Despite the clearest, most detailed and impassioned appeals I made to them, they not only continued to deny coverage, the reason they gave was extremely cryptic, legalistic and unhelpful. I have only recently learned that the "Americans with Disabilities Act" requires "reasonable accommodation for the disabled." I believe that at least in this sense, Providian AND its successor collection agencies, and now Chase, have "done me wrong." They have also gone back and reported TWO accounts to the collection agencies, when there was only one in question. I believe this is fraudulent and intentional harassment. I am just now disputing this with EQUIFAX; I was too exhausted and burdened with survival and other concerns to do more than what I had already done earlier, directly with the collections people who continued to harrass me for years involving at least two or three other companies they kept selling it to. Now it has come back to Chase on my report, plus an LVNV company. I would LOVE to participate in a class action on this. Thanks for considering that. Also, my charity, the STAR ALLIANCE foundation, has suffered as well as me personally (I am prime founder of the charity.) STAR ALLIANCE would be a great nonprofit to receive any surplus settlement funds, too. THANKS IN ADVANCE!! Peter DuMont

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