I am a recipient of a First Premier Bank Card. I once had poor credit due to medical bills, and when I became a parent and went back to school, I knew I needed to get my credit back on track. I paid off all my debt, but my credit score wasn't moving up. So, like most in my position, I chose to go with a subprime credit company - First Premier Bank.
When I signed up, I thought the only charge I would see was the $29.00 set-up fee, however, even though I was given a $250 limit, I was only able to use $90.00 because there were all types of other fees, including an annual fee of $48.00, as well as a $79.00 fee for a "program fee." I made only a purchase of gas the first month, and have only made three other purchases in a year - all less than $20 because I basically had no credit with which to buy things.
When I started to pay my balance, I felt like I wasn't making a dent. Each month I paid on time, over the amount. There were three times I paid on the due date, and I was charged an extra $11to have it processed that day. I never knew they had a web site to make payments until a rep "slipped" and told me I wouldn't have to pay the $11 fee if I paid online - so, I was about to hang up and pay online when she told me their "system was down." Looking back, I was being lied to so they could collect this outrageous fee from me for paying ON TIME!
My limit went "over" ONLY because of their fees! I have not made a purchase in 6 months. I thought I was doing a good job of paying down, then received the annual fee and went over my limit! How is this? They charge me $17/month for NOT making purchases, even though I can't because I have no credit b/c of their fees!! Each month I was being charged an extra $25 for the "over the limit fee." Even though it is not anything I actually bought, it's their fees that put me over the limit!
I called to cancel my card. I was told if I cancelled with over a $20 balance, I would still be charged $17/month for the "no purchase made fee." I said, "I'm going to be charged 17 bucks a month even though I can't technically USE the card?!" The rep said, "YES!" This can't be legal!!
This company preys on people with poor credit because they know they will be able to make money off unethical, ridiculous fees. This is unethical, immoral and should be illegal!
I want to make a class action lawsuit. I have read many complaints. TOday is 12/11/2010. Let's do this together! I need a lawyer to help me with this. To any lawyer interested: I don't want any money from this. You can keep it all if we get a settlement! I just want to be able to close my account w/o a balance. PLEASE JOIN ME AND HELP!
(After a year of having my card, I did get offers from other companies, like Orchard Bank and Capital One - which are much better options.)