My wife and I hold four unsecured Providian cards between us that combined have $35,000.00 of available and open credit, under which we owe Providian just under $3,000.00. We have never been late or over-limit on any of these cards.
I was surprised last week by a letter from Providian stating that the interest rate on only one card (my MasterCard with a 1,800.00 balance against a 7,000.00 credit line) was going from 16.9% to 27.9%, and that I had until November 1st to opt out and close my account, or pay the higher interest rates. The letter gave an 800 number to call or a PO Box to write, so I called the number. The operator said she could offer no explanation but could send a letter to me. I couldn't wait to get this letter so I called Customer Service and I confirmed with customer service that all of our Providian cards were in good standing and we have never been late on any of our accounts.
Still unsatisfied I asked for a supervisor who politely explained to me that many Providian customers in good standing received these notices, which are the result of Providian re-scoring many of it's customers as a credit risk based on information in credit reporting agencies reports. They sited Experian as the source for my evaluation so off to the Experian web site I go to check my history. Long story short, nothing negative there, just the fact that I PAID OFF and canceled three other cards, took out a second mortgage to consolidate some debt, pay college tuition for my daughter, put new windows in my house; and that I bought a new truck through Ford Credit. All accurate and all in the last 90 days. (By the way, Ford Credit is great to deal with). I'm awaiting this letter still, and it's been over 10 working days so I can only ASSUME that Providian views my responsible credit management (paying off high interest debt with low interest rate equity loans) and buying a vehicle, all within 90 days, as a warning sign of being in the high risk category.
To Providian, I say this: Beware of the consumer that has the means to PAY OFF when you try to rip-off.
Bob
Springfield, Massachusetts
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