Providian National Bank providian punishes card-holders with whopping raise in interest deceptive company Dallas Texas .....
I, too, have a story similar to the ones I've read concerning Providian Bank's questionable practice in raising interest rates to 29 percent and above.
Several days ago, a telemarker calling for Providian tried to sell me a plan that would allow me to skip payments in the event that I lost my job or had a legitimate, verifiable excuse for my inability to pay.
The caller's pitch began with the statement that I was a good customer and had not been late on payments. In spite of the flattery,I declined the offer. Now I have received a notice that the original agreement I had with the company is changing in September.
Included is an increase in interest, not to mention elimination of a grace period. In order to keep the current interest rate (which is outrageous enough) I must send notice to the company by mail that I do not agree with such changes, which will in effect close the account.
I hold a degree in journalism and worked for a number of years as a hard-news reporter for a daily paper.
The stories I am reading on your web site form a pattern. If Providian were challenged, I have no doubt the company could justify raising interest.
But what is legal is not necessarily moral. Ethics and morals are often expendable concepts in the world of high finance. So, for all of you who have been ripped-off, here it is in simple form. You and I are in a category that the plastic peddelers have found to be most lucrative. WE wanted to be members of the card-carrying society - not the deadbeats we were perceived to be. When the credit card offers came in, we were flattered that someone was willing to trust us again. We succumbed to the flattery - not once, but again and again as the credit limits increased.
Now comes the kicker...If you are who the creditors believe you are according to their statistics, you'll never pay off the balance, which justifies the increased interest rates. In effect, you have been set up - targeted to fail. In the worst-case scenario, the creditor goes to court and gets a judgment against you, and if your state permits, garnishes your wages. As a reporter, I covered courtroom cases. The district clerk's office in my locale listed page after page of lawsuits Providian had filed against local residents.
Is there anything you can do? Individually, perhaps not. But collectively, I believe so. Take the time to write your congressman. Tell that person what you have written on this site.
A class-action lawsuit may or may not apply here. But congressmen pay attention to complaints. If you take the time to contact your representative, then the assumption is that you also vote. If enough of you complain, eventually the light will come on in some congressman's head, and that legislator will see the need to sponsor legislation that will halt the way the plastic pushers do business.
Good luck to all of you. As for me, I plan to make good use of my journalistic skills. My immediate plans are to get to the post office and mail my objection to Providian's proposed changes.