Credit One Bank The unethical and predatory business practices of Credit One Bank las vegas, Nevada
The specifics of MY experience:
My financial situation had improved dramatically in 2011 so I decided to start trying to rebuild my credit. I got a credit card with Credit One Bank, paid for monthly "credit protection insurance" to cover costs should I be laid off from my job.
A few months after I was approved for a credit card, I WAS subsequently laid off from my job, they denied my credit protection insurance, and refused to work with me regarding a payment arrangement.
After denying my "credit protection" insurance and refusing to work with me on a payment arrangement, I was still unemployed so there was little I could do...They began calling me 10+ times a day (including 2-3 calls before 9am on Saturday and Sunday mornings).
I have finally found new employment and am in a situation again to begin making payments, however in the meanwhile $255.00 of penalty fees have accrued on my account (which I see as ridiculous and excessive).
I am ending up owing more in fees and penalties than the original debt was! My issue is this: being laid off from my job was out of my hands, I reacted as responsibly as could be expected and Credit One bank refused every attempt I made to rectify the situation. Credit One Bank has effectively manipulated my bad fortune to double their profit (in the process violating consumer protection laws regarding harassment)!
I feel as though the public should be warned about this company, and ask that your organization make their practices known so others do not go through what I've gone through.
I have personally submitted formal complaints against Credit One Bank to: The Federal Trade Commission, the new Consumer Financial Protection Bureau, the State Attorney Generals for my (Florida) and Nevada (Credit One Banks state) and the Better Business Bureau of Southern Nevada (Credit One Banks district).
5 Updates & Rebuttals
Jim S
Anaheim,California,
United States of America
When Everyone Does What They're Supposed To Do...
#6Consumer Comment
Mon, January 23, 2012
...it's not a rip off. You lost your job, You did everything you could and got another one. I think that's great. Unfortunately, the credit card company did exactly what it was supposed to do. It charged you for being late, raised your rate to default, and hurt your credit further. From your own writing, it seems quite clear the credit card company did nothing wrong, and if your story was presented as evidence in a trial, the credit card company would prevail in a summary judgment against you....with your own words used against you.
Unfortunately, what you think is excessive, is what happens when you go with a predatory unsecured credit card. You would have been far better off getting a secured credit card from a bank, making on-time payments (even if it is the minimum monthly payment, and it kills you), and restricting credit card usage to needs only. That's a better way to improve your credit score. Best of luck to you....
Steve
USAIf the OP had this protection....
#6General Comment
Mon, January 23, 2012
...then it most certainly should have waived his/her payments. Is right on their site. You cannot activate it within 30 days, but the OP says s/he got fired a few months afterwards.
To the OP - please state the reason they gave for denying it. From their site:
"You must: a) qualify for the benefit based on the criteria in the Credit Protection Program Agreement; and, b) complete and supply us with any verification information/forms we may request from you."
Jim
Orlando,Florida,
USA
More Comedy!!!
#6Consumer Comment
Sun, January 22, 2012
What school system do you people come from?
Where is it written your requirement to MAKE PAYMENTS goes away if you lose your job?
Where is it written the lender is required to "help you" if you don't have the money to make your payment?
Where is it taught late fees and additional interest are not to be assesed for those who don't pay on time?
At the levels of payment you cited, one weekend at a part time job would have paid off that card.
YOUR CREDIT CARD TERMS AND CONDITIONS state all fees due when there are late payments and CLEARLY states the payment is due when it is due. If you don't like the fee structure or the requirement to make payments WHEN DUE, then you should have cut the card in half and sent it back.
Robert
Irvine,California,
U.S.A.
Questions
#6Consumer Comment
Sat, January 21, 2012
So why did they deny your Credit Protection? Did you qualify under the terms, such as length and type of employment?
Also, the "penalty fees" were probably late fees and possibly over the limit fees(depending on your limit). But if $255 was more than your balance, your minimum payments were probably in the $15-$30 range.
The reason this is important is because you stated you got a credit card once your financial situation improved. Well I have what may be a shock for you. If your expenses were such that loosing your job caused you to not even be able to come up with $30 then your situation did NOT improve enough to take on a Credit Card. While this won't help you now, perhaps you can take it as a learning experience before you decide to get another card in the future.
coast
USAquestion
#6Consumer Comment
Sat, January 21, 2012
How many days after the credit insurance was activated did you request the benefits?