RIPOFF DIRECT MERCHANTS BANK DECLINES MY CARD FOR 15 DAYS AFTER EACH PAYMENT
I have an excellent payment history. I pay large sums. Unfortunately I am out of my home state working and have to mail my checks/money orders to my bank. I pay on line to Direct Merchants Bank. Thanks to the bank/post office, one money order was delayed a day. I should have checked but assumed it had been deposited. A large payment was bounced but cleared the next morning. I was charged $30. by DM and $18 by my bank. I was furious but what could I do. THen DM starts declining my card. I called to find out what they were doing and was told that they would do that for a year and that I should only pay at the required time, no extra payments. I was furious and told them that they were using this mistake to get their interest payments up and that I would transfer the balance and close the account. I said that you do not treat good costomers like that and that they were fools and thieves! They won't budge. IS THIS ILLEGAL? DOES ANYONE HAVE ANY INFORMATION ABOUT THIS KIND OFPRACTICE?
THANKS
Marc
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1 Updates & Rebuttals
Cary
Tulsa,Oklahoma,
U.S.A.
15 day holding on payment
#2UPDATE EX-employee responds
Thu, May 29, 2003
I worked for this company for roughly 5 years, and I can explain to you why your payments were held for 15 days.
If you send in a large payment, 1499 & over, your payment will be held for 15 days, to give check time to clear. Their computer is programed to hold any payment, ie- money order, cashiers check,because it is told to hold a dollar amount, not method of payment, reason for this, is because, you can put stop payments on money orders & cashier's checks.
So, believe me, it is not just your account that is done this way, they all are. And since the one check returned, yes now all of your payments, regardless of amount will be held because the check returned, this is for their protection. In the past there have been dishonest folks out there, that will charge the card up, send in a large payment, they would post payment, allow then said person to charge up card again, and then 15 dys later, 1st check bounces, and now balance is double the credit limit, and now this person is nowhere to be found. This is why that practice is done.