I responded to a mail offer for a low interest credit card account by telephone with First Premier Bank.
I explained that I wanted an account with a good credit limit.in addition I asked if I would be charged any fees if the limit was not satisfactory. I was told that I could cancel the account within 30 days and if I did so, no fees would be charged.
Upon reciept of the credit cards, fees were charged, and the manner of cancellation spelled out in the initial disclosure/contract recieved with the cards, was to notify them in writing with the monthly statement, and credit cards issued returned with that letter.
They further stated in the disclosure per paragraph 10, that "... Remain responsible for paying any amounts you owe on the credit account according to the terms of this contract..."
So, in effect you cannot cancel until over 30 days has elapsed, if you do not recieve a statement and mail in your cancellation request with cards, therby eliminating any possiblity of cancellation without fee prior to 30 days elapsed time.
This procedure amounts to a fraud wherein a consumer is charged fees of $198.00 for a card with a $350.00 limit ($152.00 avail) and no timely method for cancellation within the 30 day limit.
The consumer pays $198.00 for $152.00 credit, wow... What a deal for the bank.
In my opinion this is a fraud using deceptive promises and practices, and amounts to a method for a bank to take consumers for money and not provide a product within the expectations of that consumer.
I intend to fight this bank, and obtain a fee free cancelation agreement from them. I will advise as to the outcome as new information becomes available.
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