Complaint Review: First Premier Bank - Sioux Falls South Dakota

I got a new First Premier card in May. On the first statement it cost me $198.00 in fees even before I used the card for a credit limit of $250. On 5/21 I paid $100 toward the balance. I used the card some and on 6/4 I paid $160 toward the balance. On 6/7 I paid another $55. My second statement arrived in the mail.

Previous Balance: $198

Payments: $315

Purchases and Other Charges: $263.17

Total Finance Charge: $3.95

New Balance: $150.12

On 6/16 I paid $250.99. I wanted to pay the card off again because I was using it. I wanted a $0 balance prior to going on vacation. I knew if I sent an overpayment, I would have a credit. In my mind, I thought that was a good thing. More money available on the card to use.

On 7/1, I paid $300. I used $246 on gas and food getting to my vacation destination. The funds posted to my account on July 5. It gave me a overpayment of $54. I attempted to use my card on July 5 and my charges were rejected.

I called First Premier. I was told because of my big payments that I am a security risk. The hold was placed on my card until July 16 because I could "cancel the payment." (I paid electronically from my bank on all the payments. I had all of the electronic numbers from my bank because I placed a call to my bank. Those numbers verified that the payment cleared my account and my bank was also willing to talk to the credit card company or fax the information.) I was told by First Premier that the only way that I could have prevented my card from being placed on hold is if I used Western Union. I requested to speak to a supervisor. I talked to supervisor Tim 2 times and my husband also talked to him. I planned on using the card for gas and food to me home from vacation. My card was frozen because of a security hold. If it wasn't for my bank transfering funds from my savings to my checking account, I would have been stranded and unable to get home. Tim and all of the people at First Premier were made aware of the situation and were unwilling to change the Security Hold.

My husband was so angry, we cancelled his card. That gave me another credit on my account. I am now up to a credit or overpayment of $71 on a card that I cannot use until July 16, 2005. I was under the impression that a credit card would not be able to be used if you went over the limit, late payments, but never in my mind thought that a card could be frozen because payments are too big and too numerous.

In the fine print on the back of the bill it states "First Premier bank would like to inform you that payments posted to your credit card account may be held up to 20 days, or even longer if circumstances warrant an additional hold, or if we deem ourselves at risk for any reason. Therefore, your payment may not be available for immediate use." I guess any payment can be cancelled up to 6o days, but the 20 day hold is in effect because most of the time if a payment is to be cancelled it would be in the first 14 - 20 days.

Leona

Athens, Tennessee
U.S.A.