This seems to be a bank that has a hard time getting things right and an even harder time responding to its customers' needs. It has no trouble jacking its interest rates and fees skyhigh though.
Reading all of this might make you wonder just what kind of bank DMB is anyway. Well, it's one of a handful of "credit card banks" -- so-called banks whose primary business is issuing credit cards. A recent class action suit casts a little light on this odd breed.
Here are a few of the more recent complaints:
Steve of Newcastle, CA March 5, 2009
Steve of Newcastle CA (03/05/09) I have found that many others before me were suddenly snubbed by this company. People who were paying their bill on time, dropped from thousands in available credit to hundreds. My question is:Why would a company drop so many people who paid their bills on time for years? Something doesn't smell right here.
Deborah of Warren, OR March 4, 2009
Deborah of Warren OR (03/04/09) This afternoon I received a letter in the mail from DMB stating that they recently conducted a loss mitigation review on their accounts. As a result from this mitigation review my previous credit limit of 6800.00 was reduced to 600. I called DMB and they had no good explanation other than their insurance company conducted an audit, and the results of this audit are impacting 1000's of DMB customers. This practice is absolutely ridiculous, and I am truly offended and appalled, as I have NEVER been late, Never over my credit limit, and have been faithful for the past 6 years to this institution.
As a result of this I have paid the balance in full and informed DMB that I want my account closed as soon as the transaction clears. I am just extremely thankful that my balance was below my new credit line of 600. I truly would be less tolerant if this were not the case. Now I am faced with the inconvenience of having to order yet ANOTHER credit report to see what negative impact this has on my credit rating.
Sandra of El Cajon, CA March 4, 2009
Sandra of El Cajon CA (03/04/09) Despite never missing a payment or being late, this company has repeatedly raise my interest rate. I haven't used the card for years because of this,but have continued to pay more each month than the minimum payment. Today I received a letter that my credit limit has been lowered from 12,500 to 7,700. While this is still more than the balance I owe, it could have a negative impact on my credit score.
This could potentially have a negative impact on my crdit score since one of the ways that scores are determined is the ratio of money owed to available credit.
Stacey of Dothan, AL March 4, 2009
Stacey of Dothan AL (03/04/09) I see after looking at past history on this website that Direct Merchants Bank is trying to accomplish the same thing with my account. I have had my account for several years & have been paying my payment every month. I received a letter in the mail today that stated they recently completed a loss mitigation review on their accounts and as a result of the class of accounts into which mine fell they have reduced my credit limit.
What is strange to me is that they reduced it to barely over what my balance is. It's almost as if they are trying to get it as close as they can so that if something should happen & I were to use it they could slap me with an over the limit fee. I have paid more than the minimum balance most months and have only been late with payment maybe 2 or 3 times over the past 4 years so I would have considered my history with them to be a good one. I really don't understand why they did this. I have had different credit cards in my lifetime and have never had one do this. Is this legal?
Dennis of Alto, NM March 3, 2009
Dennis of Alto NM (03/03/09) On Monday 3/2/09 my Master Card issued through Direct Merchants Bank had a business charge declined. After frantic investigation and a phone call I was informed that my credit limit of 6,500.00 was reduced to 960.00 and without any notification. This is after over 5 years of faithfully using the card for business purposes and PAYING THE BALANCE IN FULL EACH MONTH! I have never been late, never carried a balance and paid well ahead of the due date.
At the time of this decline my balance was only 950.00 This decline of my card charge caused damage to my business and I am one of the loyal businesses in this country that keep the country going. I am fed up and am now to the point of closing and getting rid of employees. If the government is going to allow this type of activity to continue in the credit card scam I want no part of it. I can only imagine what effect this is going to have upon millions of other cardholders and the deepening recession.
You need to look out for those of us that pay for your salary and healthy benefits, and are an asset to this countrys financial well-being. I hope for a response to this e-mail or letter, however you received it. Thanks for your time Dennis McMillan PS- I paid the outstanding balance of approx 950.00, cancelled the card and told the credit card company to shove it as far up their arse as possible.
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