• Report: #1029414

Complaint Review: First Premier Bank

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  • Submitted: Tue, December 09, 2008
  • Updated: Fri, January 09, 2009

  • Reported By:Poughkeepsie New York
First Premier Bank
P.O. Box 5524 Sioux Falls, South Dakota U.S.A.

First Premier Bank Pay The Balance and Get Screwed In The Process Sioux Falls South Dakota

*Author of original report: Response to all of you rebuTTs

*Consumer Comment: Valued Customer

*Author of original report: Not Over Limit, Paid 320 to have more on card to cover an expense

*Author of original report: Pay in full, pay the penalty

*Consumer Comment: out of terms = pay the price

*Consumer Comment: FP

*Consumer Comment: BANK ERRORS

*Consumer Comment: BANK ERRORS

*Consumer Comment: BANK ERRORS

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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!!!!

Jc
Poughkeepsie, New York
U.S.A.

This report was posted on Ripoff Report on 12/09/2008 02:10 AM and is a permanent record located here: http://www.ripoffreport.com/r/First-Premier-Bank/Sioux-Falls-South-Dakota-57117/First-Premier-Bank-Pay-The-Balance-and-Get-Screwed-In-The-Process-Sioux-Falls-South-Dakota-1029414. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 9Consumer 0Employee/Owner
Updates & Rebuttals

#1 Author of original report

Response to all of you rebuTTs

AUTHOR: Jc - (U.S.A.)

FIrst of all, I have good credit. I closed credit cards over 3 years ago and keep one for incidentals because I travel with my job and use a corporate AMEX. When I need something for myself that I cannot expense I use the First PRemieer card. I admit I was naive, I originally did not know they were a credit rebuilding card issuer. I saw their website online at a low rate and low credit limit and took advantage of it. FYI, when I had higher balance cards I had a tougher time buying my house because the lender said while I had low balances I could run up the credit after they approved the loan (this was 4 years ago) so I decided I could use my debit card from my checking account for personal purchases and cut up the 4 cards I had.

I see now First Premier mailed statements only 2 weks prior to due dates for payment to take advantage of fees. Their claim is they do not receive payments by the due date when you mail them so they charge a late fee. FYI, I closed my account with them when I found out my credit union will give me a regular VISA with a low limit, which is ideal. When I closed the account I had paid the balance in full and confirmed nothing was owed. Three weeks later I receive a statement saying I owed them $22 for a cash advance. Upon calling they said I had an advance but could not tell me what financial institution (I had no such advance). After a few minutes of wrangling they removed the charge because they could not verify it. They are a shady organization and by rights can operate in the US but their practices give the banking industry a black eye, much like Madoff has done with the investment community.
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#2 Consumer Comment

Valued Customer

AUTHOR: Excustomerrep - (U.S.A.)

I have a card with this bank and I had fair credit a few months ago but since I have had this card I have built my credit because they report to 4 credit bureaus every month. The fees are all stated in the T&Cs!
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#3 Author of original report

Not Over Limit, Paid 320 to have more on card to cover an expense

AUTHOR: Jc - (U.S.A.)

I appreciate the rebuttal about being over the limit, however, I was not. I paid them $20 more because I was letting my college age daughter use my card for a purchase and she could take it back with her to school. Don't look down your nose and talk about responsible credit, FPB came to me with a low interest card offer so I took it, kept the card for small emergencies, and paid if off every 30 days. I was penalized for paying the balance in full. They tell you they have a policy in whicn they can hold anyone's payment for 2o days for any reason.
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#4 Author of original report

Pay in full, pay the penalty

AUTHOR: Jc - (U.S.A.)

The payment receipt practices of First Premier are different, to say the least. When I have paid the minimum or half the balance they apply the monies to my credit line immediately. When the balance is paid in full they hold your credit line for 20 days. It is as though they want you to pay only the minimum or less than the full balance so they can deliberately make more in interest. They also think just because their unethidal practices are covered in their terms and conditions they are treating you fairly. This practice of holding onto collected monies by banks, " using the float", was outlawed several years ago. I hope a class action comes against First Premier Bank soon.
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#5 Consumer Comment

out of terms = pay the price

AUTHOR: Jenna - (U.S.A.)

you were obviously out of terms on the card. credit limit = 300 your balance was 320, simple math shows you were out of terms. i have never been over the credit limit with any of my cards but i have a visa with a 10,000 credit limit and i have read the "buck sheet" (the white pamphlet that disclosed all the fees of the card) and they charge $50 for going over the credit limit and $50 for a late fee. be aware of the terms of your credit cards and be a responsible credit card holder. remember credit is not a right it is a privilege.
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#6 Consumer Comment

FP

AUTHOR: Robert - (U.S.A.)

What specific law(s) are they violating in holding your funds. The only law that I am aware of is that they must credit your payment on the date received. Which is what they did, because it shows a $0 balance. But availablity is another matter. There are laws that govern availablity with regular bank accounts, but this is a credit card and is not subject to those regulations.

First Premier is a Sub-Prime card for people with less than perfect credit. So they will take further precautions to make sure the money is there. An ACH transaction does guarantee payments between banks. However, it does not guarantee that the money is in the account. It can still come back as a fraud or bad. I am not saying that you are doing this but you are paying(so to speak) as a result of the people that send fraudulent items.

By the way you may have a "perfect" payment history. But not a perfect useage history. If you are sending them a payment for $320.67 you were OVER your $300 limit. This is looked as a negative item both with FP and on your credit report. Which could actually be the item that caused them to hold the credit. After 2 years with them you should have qualified for more than a $300 limit with another credit card if you did have a good history with FP.
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#7 Consumer Comment

BANK ERRORS

AUTHOR: Laurie - (U.S.A.)

File complaints with the Federal Trade Commission and the Office of Thrift Supervision.

Sounds like a bunch of BS to me, banks will always come up with some "story" about why they are not doing what they are supposed to do.
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#8 Consumer Comment

BANK ERRORS

AUTHOR: Laurie - (U.S.A.)

File complaints with the Federal Trade Commission and the Office of Thrift Supervision.

Sounds like a bunch of BS to me, banks will always come up with some "story" about why they are not doing what they are supposed to do.
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#9 Consumer Comment

BANK ERRORS

AUTHOR: Laurie - (U.S.A.)

File complaints with the Federal Trade Commission and the Office of Thrift Supervision.

Sounds like a bunch of BS to me, banks will always come up with some "story" about why they are not doing what they are supposed to do.
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