I am soon to be a customer of Merrick Bank by virtue of their purchase of NextCard. I have had my NextCard account for 18 months and have a current balance under $1,500.00. It is one of 7 credit cards I have and the least used due to its high interest rate of 12.9%. I kept my NextCard account always under 1/3 of my $5,000.00 credit line. I always paid three times the minimum balance due, and always early not just a day or two before the due date.
Merrick bank sent me a welcome letter announcing my interest rate would be 29.7% based on my credit history. This rate is almost double that which Merrick Bank offers it's new C grade credit customers on secured lines of credit. On top of this, Merrick wants an annual fee $35.00 for the privilidge of charging me Loan Shark rates.
After sending several letters inquiring why my interest rate would be so high, Merrick Bank finally replied to a Certified Letter I sent, and listed the primary reason for the high interest rate on my account as being not profitable. They also listed serious delinquencies as a cause, although none of the three CARDS ( Experian included ) have me listed as late on any account since 1992. My FICO score is 812 with Experian history, and Merrick Bank claims to have used Experian to rate my credit history.
Merrick Bank is clearly using high interest rates for NextCard customers in an attempt to sweeten an otherwise unprofitable deal they made with the FDIC in purchasing the receivables of NextCard. I could easily pay off my NextCard balance and bid Merrick Bank farewell. However, I intend to keep this account open until I get satisfaction from Merrick Bank on their interest rate rape of NextCard customers in good standing. I want to be around when a Class Action suit is brought against them.
NextCard holders in good standing should not be made to finance Merrick Bank's poor business practices. Therefore, please join me and other NextCard customers in good standing, by writing your Attorney General about Merrick Bank's practices, and let's stop these strong-arm practices before it becomes common in the Credit Card industry as a whole.
West Springfield, Massachusetts