I got a First Premier Bank Mastercard about a year and a half ago. At first, I was shocked at the immediate fees (about $175) charged to my card before I received it, but my goal really was to rebuild up my credit and not have extra play-money, as I had lost a job after 9/11, and then lived overseas for 3 years. So I just sucked it up, paid my bill, used the card sparingly, and paid my bill on time for the next 18 months or so.
Last week, not having received my bill for the month yet, I got a call from them saying that my balance was over the credit limit, and that I needed to pay the full amount ($341) immediately. I told them I'd been making my payments, and not just the minimum, and asked why were they requiring full payment.
They responded that my annual fee had hit and put me over, and that my card had been suspended and would only be available if I paid in full. Then they said that paying in full is the only wau I could avoid a negative credit report entry as well. I was highly annoyed, but I agreed, and scheduled a bank wire draft to pay the card in full.
That day when I got home, I found a letter in my mailbox from them saying that my credit card has
been "temporarily revoked, " that my account was "seriously delinquent, " (keep in mind I was not at all late on my payments) that my card would be "subject to confiscation" if I attempted to use it, and that "they reserved the right to not reinstate my charging privileges for an indefinite amount of time if they "felt that [I was] a risk."
This letter put me over the edge. I've gotten nicer letters from lawyers threatening to sue me.
After my draft went through, I called First Premier and spoke to a lady who was at first very polite. I informed her that I wished to close my account. She asked why, and I told her that I was not happy with the service, and I didn't appreciate the strong letter I got about my card being "revoked, " even though I made every payment on time and it was THEIR fee that put me over. Her tone soured, and she said "well, this is a credit rebuilding card and we report to all three major credit bureaus" as if to say "you NEED us." I told her that this level of service was not worth the piddly little $250 credit limit they gave me, that I had several other credit cards, and a credit score of 650... I hardly need the help now.
To their credit, the customer service rep credited my account with $10 because of my complaint, and since I was closing the account because I was unhappy with the service and it was still the same month the annual fee hit, she "refunded" my annual fee. It's now sitting in my (closed?) account as a credit. I'm wondering how long it will be before they actually send the money to me.
I would not recommend this card to anyone but the most desperate, and only to rebuild credit. This is not a serious card, and it will cost you a lot to have it. I agree with the poster who said Orchard Bank has a good deal. I have a card from them and I am quite happy with it.
John
Golden, Colorado
U.S.A.
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