The company appears to have been organized to target poor risk consumers, knowing they will be the least capable to afford to fight back. I made a payment days before the due date in the post office of their processor. They got the payment the next business day.
It was posted a week later, just after the due date.
On the same bill it had notice that the next month there would be a annual fee, and to avoid it I must pay off the card. I sent them payment in full, including the disputed late fee.
The next bill had the annual fee, a credit limit of zero, and an overlimit fee.
I wrote to them about the dispute, and paid this bill in full. The next thing I got was how THEY have canceled my credit card and were reporting it to the credit bureau.
I wrote their coporate office and Spiegel and advised I would be suing in California Superior Court for all of the fees and interest plus $2500 under Busienss and Professional Code 17200. They called and asked for time to research. Never heard from them.
I sent a letter advising I would be filing suit the next week and they offered to refund all the money, including those late fees. I actually got paid in full. To top it off I just got another check from them (I guess they finally figured out that my prior complaint was valid).
Eventually, the FTC will go after them, and hopefully some of the geniuses who came up with this plan to screw people will go to jail.
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