I too have had the misfortune of coming in contact with this company. Like others, in the past I have had credit and financial problems. I admit to that, yet not only does that not make me a bad person, I have since got my financial house in order. Years ago I opened a secured credit card account with Sterling Bank and Trust. This was one of those accounts where you deposit x amount of money into a savings account with them and they issue you a credit card with available credit to match what you have deposited. I had opened this account over a decade ago to help reestablish my credit.
Over the years I had increased the amount in the saving to several thousand dollars. I never had a problem with Sterling Bank and Trust and I kept the account open because it helped my credit score (longevity in good standing and available funds). Last year my account was sold to First National Bank of Omaha, and I cannot believe how much they rip off people. I didn't realize this was going on until I was filing my taxes and had not received the 1099-int form they should have sent to indicate the interest they had paid me on the secured amount. I called to inquire about this and was told they no longer pay interest on the secured amounts.
This is the first I had heard of that and the customer service person, who was actually very pleasant said they had notified all customers about this when the accounts changed. I am sure they did in fine print - but who reads all that. Seriously. States should institute clear reading laws that would force companies to clearly state a recap of material changes in large print at the beginning of those ridiculous disclaimor mailings.
Anyway, back to the non payment of interest - think about that - they have your money and they are not paying you interest even though when you originally deposited the money you were getting interest.
Amazing. But what got me next and why I closed my account was when I received a bill and saw they were now charging me - get ready for this - 29% interest!!! I was floored - that is basically loan-sharking. I have NEVER heard of that. 29%! Say that out loud... Without clearly notifiying they had raised my interest rate by almost 50% from what i was previously paying. Needless to say I have closed my account with them and would not only encourage others to do so, but would also recommend that you contact companies with whom they advertise (i have noticed they are advertising more) and let them know what kind of company they are. Thank you.
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