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Jill of Middletown NY (6/7/04):
We have been faithfully trying to pay off this debt, but with interest charges of 29.99%, little of the money sent is actually used to reduce the debt. They constantly call us and I have even been called at my new job, which they were not given permission to call there. They phone on Saturday morning at 8am and constantly complain that we are over the credit limit. If we were over the credit limit, why did they ever allow the charges to go through.
We have been paying for a year without using this card and we cannot get the debt down. Many of their agents are rude and now we are being threatened to be put into collection. How can they get blood from a stone? They are sent a payment every month, but to no avail. This debt is hanging over our head. We actually dread answering the phone.
Doris of Gainesville FL (5/14/04):
I acquired a Mastercard through Direct Merchants Bank and made charges up to about about $3000 while making on-time payments. After being on 6 months of leave without pay from work due to illness, the balance grew to over $6000 due to increases in interest rate, penalties, and late fees. The bank was unwavering in its ruthless handling of my account. Not one penny was forgiven, nor would they adjust the interest rate back down once I began repaying the debt .
It has taken me years to repay to a balance of $400. I recommend anyone to stay away from this bank. They will not allow me to make free payments online. I either have to mail it in or make a payment by phone for which they charge an extra $8 per payment. I can't think of anything positive to say about my experience with this company.
Steven of Gulfport FL (5/12/04):
I have had a credit card issued by Direct Merchants Bank since 1999. I have NEVER gone over my limit, NEVER missed a payment, NEVER even been late on a payment. Last year I paid a balance due of $3,500 in full and then did not use the card for several months. Then one day I received a statement for a monthly service fee. I called and asked them why I was going to be charged a monthly fee all of a sudden. They apologized and told me that I was an excellent customer and that they would waive that fee. NOW, instead of that fee, I received a notice with my statement telling me that my APR will DOUBLE what it has been for the last 5 years!
They will not provide me with any information regarding their reason for the change. I belong to a service that provides me with quarterly credit report updates and my credit score is in the "700's" - the excellent category. I have never missed or been late on a payment of any credit card or loan. I have also not applied for any other cards or loans of any type in several years! Of course, Direct Merchants decided to impose this ridiculous increase of my APR while my balance was close to the limit, making it nearly impossible to pay off within this decade!
Janet of Chandler OK writes (2/11/03):
I send in the minumum due requested, sometimes a little more. The interest rate is so high that by the time my payment is processed I am put over the limit and charged a fee for this also. I have great difficulty trying to pay off the card. I have not made any charges in over a year and I still get letters tellig me to not use the card until I am under the limit. In the meantime I have been charged as much as $149.00 on interest plus a $39.00 overlimit fee. I can't seem to get ahead enough to do any good.
Ray of Enid OK (2/6/03):
DMB solicited me with low interest rate and I used it to transfer and pay-off various accounts with higher rates. Then they increased my interest rate to 23.99%! I WAS NEVER LATE AND ALWAYS PAID MORE THAN THE MINIMUM DUE ... called them and they said "sorry, your credit score wasn't high enough to support a lower rate."
Tab of Laconia NH (1/28/03):
I called and cancelled my credit card because the interest rate was so high. I wanted to reduce my debt and tried to negotiate a lower interest rate after a 1-year period of no late payments. Their answer to my request: since you cancelled the card, we can not help you, good bye. The interest rate on this card is 29.99. What is this -- a loan shark bank?
Joni of Indiana PA (1/26/03):
I have had this card for about 4 years and my interest rate had always been 8.99%. In the spring of 2002, without my knowlege, raised my rate to 29.99%. I had previously paid the card off and then when I did charge, I found out after the fact that they had ancreased my interest rate to 29.99%. When I finally noticed, I called customer service and they told me that they had a gereral rate increase for everyone.
I am so angry; I cannot get this paid off with a rate like this and even if you pay over the minimum due, if you are at all close to your limit, they add that 29.99% and ot takes you over. Then they assess a over limit fee. This is exteremly unfair and I do not understand how it can be legal. I cannot keep up with this interest rate and fees. It is a great emotional stress and a financial drain.
Lisa of Cherryville NC (1/20/03):
I have been a client for 6-7 years and recently they started going up on my interest rate for no apparent reason. I called about it and was told they do periodic evaluations of my credit and that was why my rate went up. I have never been late with a payment and they were always increasing my limit. When I asked to speak to someone in the department that makes the decision to increase my rate I was told I was not allowed to speak to them. I feel like if someone has that much power over my credit that I should have the right to speak to them.
I will never get this card paid off due to the incredible rates they have imposed on me and those rates were not what I signed up for. This also put a bad mark on my credit due to the high balance that never goes down.
Frederick of Colonia NJ (1/14/03):
I am being charged $42.81 interest on a $39 bill. I paid off the balance in December minus a late fee of $39 I am trying to have removed. I feel I am being ripped-off on this charge.
Azalee of Los Angeles (1/5/03):
I became totally disabled from my job and got behind in my credit card payments. I caught up with the payments and was still being charged overlimit fees. I canceled the credit card and the interest rate was raised to 29%. This bill is breaking me because the payments are so high and after the finance changes only a few dollars is taken from the balance.
Linda of Colorado Springs (11/2/03):
I was promised an interest rate of 15.99 fixed, not variable for regular purchases, 21.99 for cash advances. That was agreed to some time ago. I've never been late on my payments at all, and I do not overdraft my account. The prime rate has not increased. But suddenly this company raised my rate on my existing account balances to 20.99 and 26.99 respectively with no notification whatsoever. When I called to discuss this, they said they can charge whatever they want and I have to live with it.
I am extremely upset - my husband just lost his job and this was the LAST thing I needed. I have been ill for months which is the only reason the card is not paid off already (I use it mainly for my prescriptions, which are ridiculous in themselves) and I feel they are taking advantage of me.
On August 2, 2000, Linda of Rockport, MA, wrote:
Is there a legal limit to the amount of interest that a credit card company can charge? I was told on the phone that my interest rate was 19.9 ... but on my statement it is 28.9! I am having a hard time paying off this card because of the high interest.
My main complaint is that on my statement it lists a minimum payment. If the minimum due is sent in the interest payment on the next statement is higher than the minimum payment made. If you are close to your credit limit the added interest will bring you over your limit and you will be charged a $29.00 OVER LIMIT FEE ... even though you did not purchase anything!
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