CONSUMER NEWS RECALLS COMPLAINT FORM SCAM ALERTS

Small Claims Guide \| Class Actions \| Lemon Law \| FAQ \| Resources \| Newsletters \| Spanish
Automotive Education Electronics Family Finance Health Homeowners Shopping Travel

Net 1st National Bank

One way to look at Net 1st is to say that it doesn't get much worse than this. Net 1st charges consumers a nonrefundable application fee, a stiff annual fee and a $500 "reservation fee." This means that everyone who applies loses money while those who are "accepted" lose even more. Harold, an alert reader, sees it that way.

The other way to look at it is that Net 1st helps consumers who don't have a credit rating build one in a pay-as-you-go manner. Alex, a customer service rep for the bank, makes that argument pretty well.

The argument is moot, however, since the Office of the Comptroller of the Currency closed the bank in March 2002.

Below are some of those who've had a less-than-perfect experience:

Manual of Ypsilanti, MI, writes (5/23/01):
Gave my account numbers for a deposit and they took $99 out of my account and the 1-800 number is not working so how would I get in touch with them?

Cevoria of St. Louis (5/1/01):
I called 1-888-900-2262 on May 1, 2001. I was not aware that $119.00 was taken from my checking account until I received an insufficient notice. You see I was not aware also that you have to pay dues to have this card. I DO NOT WANT NO CREDIT CARD from Net 1st, this is very wrong in my opinion. I am not a member of the Rockefeller family with large of amount of cash in my checking account, please put my $119.00 back in my account, why do I have to wait fifteen (15) days when it only took you 15 seconds to transfer my $119.00 to your Net 1st Bank.

Vanetta of St. Louis (4/23/01):
Net 1st took $89.95 out of my bank account after falsely stating in their ad a chance to receive a credit card with their company. The amount was taken out prior to my approval to do so. When I request my money back I was treated harshly and was took by clerk that there was no way that I would be given a refund even after I declined to accept the card.

It was rather degrading to be accused of lying by their clerk and to be told that no-matter what the circumstances were I would not be given the $89.95 back. It is getting pretty bad when companies can trick potential customers by false advertisement to fatten their own pockets.

Erin of Camp Pendleton, CA (4/21/01):
I was using my computer and a banner came up for a credit card. Since I was just starting out and needed to build my credit, I clicked out of general interest. Little did I know, that when I filled out the application for information that there was a "hidden" application charge of $89.95. Being that I was in the process of changing banks, my hometown account had only around $20 in it. My account was charged the $89.95 plus an overdraft fee of approximately $20.

A couple of weeks later, I was mailed my activation certificate which I then filled out and sent in the minimum payment of $15. I then received my acceptance letter dated November 14, 2000. After my initial minimum payment (check dated November 2, 2000), I tried to cancel my card. By what the customer service representative told me, my card had been canceled. On February 7, 2001, however, I received another bill stating that my account was past due and that I had been referred to the Collections Department. Only this time the payment was to be $45.00.

I was able to call a Customer Service Representative on February 13, 2001, and once again, canceled my card (check dated February 16, 2001 for $45.00. The representative waived my late fee because of the length of time it normally takes for me to receive or send mail (usually a 1-2 weeks either way). I also asked to have a written letter sent to me confirming the cancelation of the card. She told me that it was no problem and would be promptly taken care of. I have received another reminder stating that I have $15.00 past due from my last statement and a late charge of $25.00 has been added to my balance and will be on my next statement. I have received yet another bill from them stating "as required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligation."

So once again, I called Net 1st National Bank and spoke with Yasmin Sims and explained to her my problem. She told me that my account could not be closed on February 13th because my late fee had been waived. And again I requested that my account be closed, and was told that this time it would cost $51.95.

Being that I am only 20 years old, I have little credit history. I was looking for a way to build good credit up, but instead I found just the opposite. I am living on my own and do not live off of my parents so it is imperative that I am able to build good credit to provide for myself. With what Net 1st National Bank has done to me, I have been out around $150.00 including the charge from my hometown bank. This may not seem like much, but to somebody who is just stepping foot out in the world and has nothing to fall back on, it is everything.

For one, my credit report shows that I owe over $500 dollars for a credit card that has long since been cut up and never used. I can't even get a loan from a bank or buy a used vehicle with that. Net 1st National Bank has caused emotional damage in that I am always worrying or angry that my credit has been damaged and how to deal with that in the right way. I feel that justice should be served and that Net 1st National Bank, not just get a slap on the hand, but dealt with in the appropriate manner. Thank you for your time and I would appreciate.

Nick of Oceanside, CA (4/4/01):
They withdrew funds from my checking account before either my wife or I had even recieved the "Activation Certificate." They were very difficult about the matter with my wife when she called to ask why they had withdrawn funds from our account. When I called, they tried to give me the runaround & it took me getting upset before they told me the steps needed to get a refund.

Because of this withdrawal, we had two checks bounce costing us the fees from the bank & from the vendors.

William of Hawthorne, NV, (4/4/01):
I use on-line banking. Downloaded my transactions today. There was one which was a debit -- "Call888-900-2262 Electronic Withdrawal $89.95" I had no idea what this was for so I called the number and got an automated machine. This at least gave me the company which I then did a web serch for Net 1st and your site came up. On your site, I read a complaint and also saw the $89.95 amount mentioned as an application fee. I have never heard of this company much less applied for credit. I mean, I make >$90k/year and have as much credit as I'd like. How could this company that I've never dealt with do a electronic withdrawal much less even know my checking account number?

Anne of Newport News, VA (3/7/01):
I filled out an inquiry about credit cards to see if I qualify. I received an activation number if I wanted to sign up for a credit card. I would pay $600.00 to activate and at that time initiate if I chose the option.

I got my bank balance and I saw a debit of $89.95 to my account from Net 1st. I had never called or activated the card. there is no phone number. If you call the 1-888-900-2262 you have to give them the activation number to talk to a human. I can not afford the $89.95 and do not need a credit card at 150 percent interest.

Edwin of Stockton, CA (3/5/01):
I applied for a credit card and was sent a denial. However they still took $80 out of my checking account. I have no idea how to contact them. I have tried to email them with no pesponse at all.

Kim of Grover Beach, CA (3/5/01):
I've been trying to rebuild my credit for years. Net 1st was the twentieth attempt at applying for a card and they approved me. My main complaint is that I have been sending these people money and they cannot seem to give me a statement of where this money is going and how they are calculating it. I have even attempted to contact one of their 800 numbers and ended up on a phone sex line. I can't even access any of my account information online anywhere.

I am suspiscious and have become terribly uneasy about where my money is going. I have given them a total of $229.00 including the $89.95 and I want answers where that money is going and how it is being used. I work hard for every penny that I make. I have had credit and financial difficulties before and I really do not want to ever repeat that dead end cycle again. I would like to be able to rebuild my credit without these heartaches.

James of Oglesby, TX (2/20/01):
The following is just one of the messages I have been sending since Feb. 15th, both by e-mail and land mail.

To Whom It May Concern, This is my second (via snail mail) message to you. On Feb. 15, 2001 a member of my family applied for a Net 1st Mastercard via internet. This was done without my permission. CANCEL THIS APPLICATION IMMEDIATLY PLEASE! I am a senior citizen on SS Disability and cannot afford to have any money taken from my bank account Today, I sent an e-mail containing the same information as above for the second time. Please respond ASAP. This situation is subjecting me to undue stress and illness. I am so afraid you will cheat and pretend you didn't get my messages until after the first 15 days are past. Please, I beg of you don't do that.

Anna of Alexandria, LA (2/7/01):
My husband responded to a "Guaranteed Unsecured Mastercard" ad he was sent via email. He was unaware of any fees involved -- namely the $89.95 application fee that was drafted from our account without our knowledge. The salespeople were rude. By the time we were aware of the charge, the fifteen day cancellation period had expired. What I want to know is this: I have done a lot of research on this, and from what I have gathered, it is illegal to "request or receive payment of ANY fee in advance of obtaining a loan or other extension of credit when the seller has guaranteed or represented a high likelihood of success in obtaining such." I am trying to get this money back- I am pretty sure you can't be bound to an illegal contract.

Two checks to my toddler's day care center bounced, and we had no earthly idea why. The unauthorized withdrawal really wrecked our finances.

Sharon of Westmont, IL (1/28/01):
I applied for a credit card with Net 1st and they automatically deducted $89 from my bank without me knowing. And then, didn't even give me a credit card!!! I didn't know they withdrew money from my bank, thereby causing me to be unaware of deductions. My bank deducted money for "insufficient funds" because I didn't know Net 1st deducted $89, then $95. I never gave them permission to withdraw any money, and if I did, I thought I would receive a credit card in return.

Michele of Kingsville, MA, writes:
I applied for a MasterCard over the Internet. The site was set up such that when I clicked on the "Apply for Master Card" icon, it took me past the "Terms and Conditions" link, without it being visible. I completed the online application, giving information about my checking account. All the while I was completing the form, I was bombarded by other screens advertising all sorts of dot.com sites. There were over 15 internet sites open on my desktop by the time I got to the end of the application. They were terrible distractions. In addition, there was no confirming e-mail or confirmation screen when the application was submitted.

A week later I received an overdraft charge from my credit union because I (luckily) did not have $89.95 in my account. Since I had not used my account, I was baffled about this $89.95. There was an 800 number on the overdraft notice which took me to Net 1st National Bank. The man on the phone said that by submitting the application, I had agreed to the "Terms and Conditions" even though they were never displayed on the screen -- the applicant had to find the link and open that file. I argued that if they really wanted the applicant to see this page, then the page would come up automatically during the application process. He said that I would be receiving a letter soon, but by that time, they would have had the opportunity to help themselves to my checking account numerous times.

When I said that they might have avoided a bounced charge if they were more open about how the money would be collected, the reply was that they would keep trying to collect it weekly -- even though every refused transaction would cost me $18. I told him that I wanted to cancel my application and he said that he would, but he would not send me an email or letter confirming the cancellation. I closed my credit union account -- I don't trust these people.

When I did finally manage to find the "terms" page (after the phone conversation), I saw why they made it difficult to find. I don't know why anyone would agree to their "terms". There was an $8/month fee for having the card. Before the card could even be used, $500 would have to be put into the account. So just to have this MasterCard would cost me $600. Without making any purchases, I would be in debt, and they would just help themselves to my cash whenever they wanted. I had to pay the overdraft charge, which is cheap compared to their application fee. I had to take an afternoon off from work to close my checking account. I am new to the work force and wanted to establish credit by owning a credit card. Now, I may have damaged my credit instead.

Stuart of Lebanon, TN, writes:
I saw one of their ads on the Internet one night and they claimed that there were no "upfront fees". I went ahead and filled out the application and the next thing that I now is there was a debit from my checking account for $89.95. So I called them up to ask what was going on they said that there was a application fee.

To me that is still a upfront fee no matter how you look at it. Her response was that there was no deposit required and that the interest rate was zero. But at the same time you were already at the limit.

I tried calling to get it straightened out and had no luck whatsoever. I spoke to three differant people with no help at all. It looks like I am out the $89.95 that charged upfront after all. I will not refer anyone to them at all and the ones that I do talk to about them I will put a bad taste in their mouth.

More info

Back to the top | Credit Cards

Consumer Affairs.Com is provided by ConsumerAffairs.com, Inc. in association with Joan E. Lisante LLC, licensed to practice in Virginia and the District of Columbia and the Law Offices of Horwitz, Horwitz & Associates, Ltd., licensed to practice in Illinois. ConsumerAffairs.com is an independent service not affiliated with any government agency. For more information see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice. ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof.