I have had a First Premier Mastercard for 2 years with a $300 limit. Each month I have paid the full balance due to avoid fees. This week I paid them $320.67 thorugh my bank's internet banking service,d rawing the funds directly from my account and sending via ACH (Automated Clearing House) which guarantees payments between financial institutions.
When I checked my balance by phone after the payment cleared my bank account I had a 0$ balance due but "No Available Credit At This Time". When I spoke with a Customer Service Rep they told me they can hold payments up to 20 days before releasing my credit line. I asked why they did this since my payment history is perfect with them. He told me they could not guarantee the funds were there!! I asked for a Supervisor and when he took my call he said the same thing with an additional catch, they could not verify the funds were received.
I asked how they could credit my payment and not yet be able to see they had the funds? He said they use a third party and the third party only released payments to them once they received "a bunch of payments because this saves time and is less expensive to First Premier". I told him he was full of it and asked for his manager.
When the young lady gets on the phone (she would only give me her first name as they have a policy against employees using their last name) She asked me if she could help. I asked her if she had been briefed by the "Supervisor" I just spoke to and she said yes. I then asked her his name and she stuttered (imagine that!!) and gave me an incorrect name. I asked her what had he told her and she stumbled through it. Short end to the long story is this, she said they hold the monies that are paid up to 20 days to guarantee payment because they do not know when payments are cleared by the issuing bank. I told her you would know if I had not paid because I have received calls claiming late payments in the past when the due date on my statement was 6 days away.
I told her they were violating banking laws and that I would cut up my card and close the account. I asked her to close my account and she refused, saying I was a valued customer!!
Cut up their cards if you have them, send them back, and make copies of the cut card and the letter you send. I hope there is a class action suit in the making here and they are ordered to pay everyone back for the monies they have ripped off and the management team gets prosecuted!!!!
Do not use First Premier. Finally, my credit union rep where I do my banking asked me a few days ago why I had their card and I told her I had been rebuilding my credit. She told me with a decent rating (which I have) they could extend me a VISA with a $300 limit. Go to your banks and ask their in branch reps to work with you on getting a low limit card from them.
First Premier should be brought to justice for their practices!!!!
Poughkeepsie, New York