Complaint Review: Direct Merchants Bank

Number one, I have to say our Collections Department is very good at what they do. However, that means that they treat some of the clients horribly. Sometimes being offensive to the client in the manner they speak. They can be hostile. I don't like it, bu I understand it. It is their job. It is what puts food and pays their bills. Someone has to do it. In regards to Patricia's direct case, unfortunately I don't know her specific circumstance. Here's the thing though, if the client has available credit but not enough to absorb the finance charges and any other recurring billings such as what we call 'enhancement services' [i.e debt waivers, Identity theft prevention, discount programs etc]that unfortunately is their burden to bear not the company. It would be the company's sure if said company did not provide them with their information but they did and they do. The thing is no one reads. Everyone takes the literature with their credit cards for granted.

I guarantee the percentage of people who actually look at all the information of their statements is probably about 50% or less, for any number of reasons including laziness pure and simple or ignorance who knows. Look, your percentage rate is always listed on your monthly statements, so is your balance, so is your available and recent transactions, it is all there in black and white. Also the one thing that probably only 10% of what people read [fine print] is probably the most important document, "CardMember's Agreement". It says there that the Bank holds the right to make any ammendments and changes to the account including APR [Annual Percentage Rate]. Now, something that frustrated me as an employee was something Patricia mentioned, the amount that the collection's representative had asked as payment for the Over Limit status. It's awful isn't it? Large payments. I hated advising the client of it. It was though, for their own benefit. I no longer work their so excuse me if my memory has failed me but the Over Limit calculation essentially [although later on it was tweaked slightly] you take your over the limit amount and add that to your mpd [minimum payment due], add that to any recurring finance charges and you have your basic "advised" amount. However to go the extra mile really the person needs to add their interest [monthly approximate] also into the equation and possible the penalty fee(s) itself.

The explanation on this is simple. you need to pay enough money to have your account not just under the limit but enough to allow for FC[finance charges] and recurring fees [again, enhancement services your own recurrent billings such as ISP, cable etc]. Remember it is the responsibility of the card holder to have enough available credit to absorb the interest and the other fees if applicable, not the bank. The trick is this has to be done as soon as possible. If money is tight do it this way: pay your MPD before [obviously] the due date. Now approximately about 5 days or so depending on when you cycle your finance charges come in and so before that happens you need to make the rest of the money requested to be paid before the cycle date. Now when customer service advises of this don't think we take a cut of it as commision that is not how it works. Collections on the other hand they work in some type of system similar to that in the sense that they do recieve acknowledgement for the amount they do get on a monthly basis but again customer service [yes CS and Collections are two seperate groups] does not recieve and incentive for saying "Ms. Smith you need to pay X amount" because they're telling you for your own good not theirs, they do not benefit from it at all. Customer service is there to sell you things and yes ofcourse to help with problems, but honestly mostly for selling and thats pretty much customer service, problem solving and selling.

there is no need to be upset at DMCCB in regards to the increase in payment notices were sent last year about pending changes in the industry and your account before the changes per the Government had been mandated. All clients were forewarned and advised. It was a strange formul that calculated the MPD it used to be a formula where we figured your average daily balance and periodic rates etc and calculate that in accordance with the balance for that cycle. Example the final number might be [as per most cases ] 2.5%. you take that figure and multiply by your cycle balance and there you have your MPD. Some MPD's were test modified by adding penalty fees the PCM [Primary Card Member] had incurred or other times MPD also included the debt waiver programs. As much as I can rip this company for everything I've seen and been asked to do and say even when my conscious told me as far as what I read from Patricia's case she only really has herself to blame. She's probably one of those individuals who probably never read all of her statement details or even the CardMember's Agreement documentation, which by the way can be made available upon request [because most people throw away the inital copy anyway].
For the most part the high interest rates were applicable to the indivual. In many cases the client would lie over the phone saying they had great credit, when clearly as per what our system had on the client such as behavioral scores with DMCCB [by the way HSBC bought DMCCB/Metris ]and also credit score. Now we were not allowed to disclose that information for the strange reason they [DMCCB/Metris] told us we are not credit experts . I always thought that was a diservice to the client. They should know what we know, hell they might have an error with their credit history and the fact that we were able to say "Hey Ms. Smith I see here your behavioral score with us is good at 700 but for some reason your credit score shows 500". Because the argument always is "we pay you people on time", yeah that maybe true but you're not paying everyone on time or like I said maybe there's an error in your history. now remember the world is not black and white, there are many shades. So not everything fits in that scenario. Let me just say my duties were to retain the clients' business. In this we used what the powers that be called negotiations. In some cases we could lower your APR by a few points or sometimes by a dramatic drop, refund penalty fees or some kind of action. Sometimes we didn't give anything to the client to win them over other then give them information. Such as explaining why Ms. Smith had to pay X amount to settle the OL account. Sometimes they needed someone to explain to them why the actions were being taken. People get upset at what they don't understand. Ignorance can be a b***h. Doesn't mean you're stupid, you just were not aware and thats ok so sit and listen and you may learn something. Hell if the company messed up we have to fix that be it an apology or compensation etc. That is a given. Anyways before I went into that tangent wha tI wanted to say/write was that there were times we would get clients into retention that were simply irate because they had a high [and that term is really subjective] interest rate. One of my favourite examples [which I brought up at not just a team meeting but what we called a town meeting. all departments and a upper level management not to exclude CEO ] was a gentleman who had an APr at one point at 13 or so and we raised to 25 if memory serves. Clearly upsetting, your APR just doubled, but why. Well the first thing to do when we get prompted with that is check your payment history. This PCM was never late. The man was perfect. 800 something behavioral score [that's just an internal number for us.] and credit score was just as high. Never even over the limit always an excellant client even had some of our enhancement products if you can even believe that. Man was loyal. I couldn't offer him a reason as to why his APR doubled. See when that kind of situation happens when APRs are increased we send notices in regards to it. Now internally if we see a particular code next to the APR increase amount we can tell if it was 'due to adverse action" [AA]. I found this in the automatic memos generated by the system. His APR was increased due to AA. Again we have to look back at what I saw before me. The epitome of perfection of a cardholder. Now the AA letter was just complete garbage. I say this because I had a client read it off to me [and we sent the same letters to all AA afflicted clients] the letter to summarize essentially said that the increase was for revenue reason. What a load? Wheres the AA / Adverse Action in that? Things like that I could never justify, cases like the perfect client I saw. In Patricia's case I don't think she was similar to that person. As much as I may dislike the practices, they can and most likely almost all can be justified except if the Collections rep was being an a*s, of course. And with some finality to this rebuttal no company Patricia legally can purposely put your account in bad standing, that is all on you. Card holders have to be informed. You need to open your eyes and minds and ears and not your wallets. That is the reason why I responded. I don't want to belittle Patricia or 'flame' her nor Metris/Dmccb in any way for that matter. I'm just telling it how it is based on my knowledge and mine and fellow coworkers' experiences. Ye3s some things look shady but they are legal. As I said open your eyes, minds and ears. Learn. Be informed. Don't be ingorant. If you don't want an enhancement service say no. We can only give 2 rebuttals. Take care and God Bless. Peace be with you all. Since I was an employee of this company I unfortunately will not provide my name for fear of reprocussions stemming from me speaking/writing out.

I am a current employee of Direct Merchants Bank. I have been reading the reports on this website and notice the same complaints. I am writing this rebuttal to clear up a lot of things regarding the bank and its policies. Me being a worker for this bank, am the first one to admit that this bank isn't perfect. There are always complaints within the employees about some of the policies this bank carries.

First of, so everyone is aware, Direct Merchants Bank and Metris Companies were aquired by HSBC Bank Nevada in December. It is now owned by a different bank, but so far there are no changes in the policies.

DMB does not have fixed rates, all of the rates are variable based on prime. Some consumers do not know that they can call the bank and have the accounts reviewed for a lower rate.
A representative will check with the computer and if a rate is available we will apply it. Now this can only be done to the accounts that are open and in good standing. We have customers that close the accounts and then want the rate lowered, and we cannot do anything for them. The system will not allow us. The decisions the reps make are based on the computer system. It is not something done personally to the customer, we can only do what the systems allows us. This also goes for fee removals.

Normally a fee will be removed once a year as a courtesy. However, if your credit score is below a 650, chances are you will not have a fee removed. The system will look at your credit score and the account history. Now, not even a supervisor can override this. When a customer asks for a supervisor, they will tell them the same thing.

If the finance charges place the account overlimit, there will be a fee charged for that. The same thing goes if a late fee causes account to go overlimit. This is included in the terms and conditions provided with the account. These claims will be hard to fight.

When the APR is increased dramatically it is caused by a Reprice. Which we describe as a "change in the terms and conditions on the account." It is also stated in the cardholder agreement that this could happen at any time. Yes a lot of time the increase is due to business needs. But others it is because we have received notification from the credit bureaus that there might have been a change in the score. Due to this we are going to increase the APR so we can ensure we are making the right profit.
**A note to everyone thinking about applying to a credit card, please take the time to read the terms and conditions provided to you. The small print will include anything you need to know about the credit card. This will give you an idea what you can fight and what you can't. Also those that have credit cards, take out everything you get with your statement and read it all...on these loose papers will be included any changes made to the accout, how it will affect you and if there is an opt out available**
I hope this will help shed some light on this company and help those who are currently having problems.

I do sympathize with everyone, as I said, even though I work for DMB, I don't agree with all of its practices. It has helped me deal with the credit cards I own though. Now I know what to look for and understand the credit card industry more.

I am a current employee of Direct Merchants Bank. I have been reading the reports on this website and notice the same complaints. I am writing this rebuttal to clear up a lot of things regarding the bank and its policies. Me being a worker for this bank, am the first one to admit that this bank isn't perfect. There are always complaints within the employees about some of the policies this bank carries.

First of, so everyone is aware, Direct Merchants Bank and Metris Companies were aquired by HSBC Bank Nevada in December. It is now owned by a different bank, but so far there are no changes in the policies.

DMB does not have fixed rates, all of the rates are variable based on prime. Some consumers do not know that they can call the bank and have the accounts reviewed for a lower rate.
A representative will check with the computer and if a rate is available we will apply it. Now this can only be done to the accounts that are open and in good standing. We have customers that close the accounts and then want the rate lowered, and we cannot do anything for them. The system will not allow us. The decisions the reps make are based on the computer system. It is not something done personally to the customer, we can only do what the systems allows us. This also goes for fee removals.

Normally a fee will be removed once a year as a courtesy. However, if your credit score is below a 650, chances are you will not have a fee removed. The system will look at your credit score and the account history. Now, not even a supervisor can override this. When a customer asks for a supervisor, they will tell them the same thing.

If the finance charges place the account overlimit, there will be a fee charged for that. The same thing goes if a late fee causes account to go overlimit. This is included in the terms and conditions provided with the account. These claims will be hard to fight.

When the APR is increased dramatically it is caused by a Reprice. Which we describe as a "change in the terms and conditions on the account." It is also stated in the cardholder agreement that this could happen at any time. Yes a lot of time the increase is due to business needs. But others it is because we have received notification from the credit bureaus that there might have been a change in the score. Due to this we are going to increase the APR so we can ensure we are making the right profit.
**A note to everyone thinking about applying to a credit card, please take the time to read the terms and conditions provided to you. The small print will include anything you need to know about the credit card. This will give you an idea what you can fight and what you can't. Also those that have credit cards, take out everything you get with your statement and read it all...on these loose papers will be included any changes made to the accout, how it will affect you and if there is an opt out available**
I hope this will help shed some light on this company and help those who are currently having problems.

I do sympathize with everyone, as I said, even though I work for DMB, I don't agree with all of its practices. It has helped me deal with the credit cards I own though. Now I know what to look for and understand the credit card industry more.

I am a current employee of Direct Merchants Bank. I have been reading the reports on this website and notice the same complaints. I am writing this rebuttal to clear up a lot of things regarding the bank and its policies. Me being a worker for this bank, am the first one to admit that this bank isn't perfect. There are always complaints within the employees about some of the policies this bank carries.

First of, so everyone is aware, Direct Merchants Bank and Metris Companies were aquired by HSBC Bank Nevada in December. It is now owned by a different bank, but so far there are no changes in the policies.

DMB does not have fixed rates, all of the rates are variable based on prime. Some consumers do not know that they can call the bank and have the accounts reviewed for a lower rate.
A representative will check with the computer and if a rate is available we will apply it. Now this can only be done to the accounts that are open and in good standing. We have customers that close the accounts and then want the rate lowered, and we cannot do anything for them. The system will not allow us. The decisions the reps make are based on the computer system. It is not something done personally to the customer, we can only do what the systems allows us. This also goes for fee removals.

Normally a fee will be removed once a year as a courtesy. However, if your credit score is below a 650, chances are you will not have a fee removed. The system will look at your credit score and the account history. Now, not even a supervisor can override this. When a customer asks for a supervisor, they will tell them the same thing.

If the finance charges place the account overlimit, there will be a fee charged for that. The same thing goes if a late fee causes account to go overlimit. This is included in the terms and conditions provided with the account. These claims will be hard to fight.

When the APR is increased dramatically it is caused by a Reprice. Which we describe as a "change in the terms and conditions on the account." It is also stated in the cardholder agreement that this could happen at any time. Yes a lot of time the increase is due to business needs. But others it is because we have received notification from the credit bureaus that there might have been a change in the score. Due to this we are going to increase the APR so we can ensure we are making the right profit.
**A note to everyone thinking about applying to a credit card, please take the time to read the terms and conditions provided to you. The small print will include anything you need to know about the credit card. This will give you an idea what you can fight and what you can't. Also those that have credit cards, take out everything you get with your statement and read it all...on these loose papers will be included any changes made to the accout, how it will affect you and if there is an opt out available**
I hope this will help shed some light on this company and help those who are currently having problems.

I do sympathize with everyone, as I said, even though I work for DMB, I don't agree with all of its practices. It has helped me deal with the credit cards I own though. Now I know what to look for and understand the credit card industry more.