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:

Ann of Campbell, CA March 16, 2006

Ann of Campbell CA (03/16/06)
I applied for this credit card a few months ago and they have all these charges on the statement that I never agreed to--'privacy matters' etc. I am really upset because I havent even been able to use the card b'cause I have paid out so many different MONTHLY fees (that seem illegal and unwarranted). I think this is a scam and I want ALL my money back from not only the charges that I never approved of--- but of all the miscellaneous monthly charges that seem VERY UNREASONABLE AND ILLEGAL.

William of Thomasville, PA March 10, 2006

William of Thomasville PA (03/10/06)
I am writing concerning Premere Bank. They operate, sort of like Cross Country Bank. I receive applications all the time from them. Saying they will help, people get a credit card, that has had bad credit. Here is where they get you, they say the interest rate is as good, as people with no credit problems. They say on the app, that you will receive, something like 250 credit limit. But when you read the fine print, after they charge you, with all the fees, you might have left, if you are lucky, about 50 credit limit.

This happened to my daughter and after she received the card, she tried to use the card at a store, but she only had enough credit limit, to buy a pack of cigarettes, that was all. Now she has a debt, and no credit limit. She thought it would be a good way, to help her credit, but it only put her deeper in debt.

Deidre of Denver, CO March 3, 2006

Deidre of Denver CO (03/03/06)
I received a card in the mail from First Premier Bank. I did not apply for this credit card. I read the disclosure statement and they want to charge me a total of 178.00 in fees. That would leave me a balance of 50 dollars. I do not want this card. I did not sign anything and I am following the instructions that say to cut the card in half and send it back to them. What do I need to do to ensure that I have no further problems with this company. Furthermore, how did they manage to get authorization for a credit account on my behalf?

I did notice that in their disclosure, they say that if I don't return the card within 30 days it is automatically a binding contract. I have the envelope, which is post dated March 1st, 2006, but the card says it was issued in February. Is this a way of possibly not giving me a chance to deny the card?

Joshua of St. Paul, MN February 24, 2006

Joshua of St. Paul MN (02/24/06)
I thought that I was signing up for a secured credit card offer but had no idea until I received their credit card that what I purchased was actually a one-time pay for "no services rendered" fees. To my dismay, I have "blindly" agreed to this and now question what I can do to cancel this ripoff.

To make matters even worse five days after submitting my application for this "scam" I lost my job and have no way to afford such a thing. If this isn't a predatory lending practice then I certainly don't know what is. What can I do? Any information or advice would be greatly appreciated.

John of San Antonio, TX February 20, 2006

John of San Antonio, TX (02/20/06)
I signed up for a Visa credit card and they have charged me with hidden charges, late payments, over limit fees, etc. Plus they will not let me cancel my card.

I have canceled my card twice and paid the amout requested on several occassions and they still keep sending me a bill every month for additional fees. They have done the same thing with my wife's account.

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