Complaint Review: First Premier Bank - Sioux Falls South Dakota

If you get a card that, by default, is already 71% maxed out before you ever use it, then how can you preach to keep your balance less than 50% of your available credit?

Sure, its all in the TOS.  That's how it is legal. 

What makes it a scam is the completely unethical and deceptive tactics used by this company (and others like it) to lure those in financial distress into signing.

Let's face it-  if you are good at managing your finances, then you will POSSIBLY have a chance at keeping a card like this in good standing.  HOWEVER, these cards are not marketed to people with good credit.

So why is a system that is designed for a sub-prime market governed by regulations that would keep even the most studious accountant on their toes?  Because the percentages hold true:  those with bad credit skills are likely to have problems, which then delivers the profit margin known as FEES.  And they justify this behavior by saying that all of the fees are there because you are a high-risk to them. 

BS- they market to high-risk BECAUSE you are high-risk.  They stand to make the most money off of the people who will eventually screw it up.  They count on you screwing it up; that's where the real money is.

How is it a scam?  Because this, and other companies like this, do the following:

1)  Bait the trap with deceptive marketing tactics and an offer too good to refuse for those in need and in desperate financial circumstances.

2)  Hook you with the contract that you "should have read fully"- btw, if a person is looking at losing their car if they don't make a payment in a week, it stands to reason that they might tend to overlook the details of the contract and just go for the quick-fix.  Chalk it up to human nature.

3)  Wait in the foxhole for you to make a mistake (which is exactly the profile of the high-risk person they market to)

4)  Pounce on you by creating "fee-feedback"- a loop that is hard to get out of once you initially make the mistake.  By the way, when you pay as much as you can to "bring your account current," it is usually not mentioned that there other fees that haven't posted to the account yet and as soon as they do it will send you back into over the limit status therefore causing another fee that will sit unaccounted for until the next bill because you didn't know it was there in the first place.  Fee-Feedback loop.

Now, if you think that is ethical behavior for a company that's mission statement claims they are there to help you, then maybe you should be an employee.

PS- In the past, I have been a victim of several of these scams.  No matter what company it was, I have been insulted, belittled, teased and made fun of by the operators when trying to rectify a mistake.  Have you ever been at risk of loosing your home or car and then, when you try to get things on track, have the people on the other end ask you "Well why did you sign up for this card if you didn't have any intention on paying for it?"  Listen you bleeping-idiot, I didn't call you for you bleeping opinion and smart-a*s highschool attitude.  I called you so I could fix my problem.  Either help me fix it or get me someone that can, but don't insult me.

The last time it happened for me was 6 years ago.  I finally got out of the loop.  I have since cleaned my credit up and those past mistakes are about to drop off the report- good riddance.

It funny that the only way I was able to clean up my credit was to finally get rid of these scams that were preying on my youthful ignorance.

All you have to do is call customer service and they will give you your current balance. The fees only assess once a month on the billing date. So the balance they give you is current and up to date. Call them, cough up the $11 to pay over the phone, pay the balance, and close the card. Or keep it open and don't get so close to the credit limit. Just because you have the balance available doesn't mean you should use it. Balances are also reported to the credit bureaus and you should try to keep your balance under fifty percent of your credit limit. Fees are only assessed to the account if they are applicable. You can control when you send your payments, how much you send, and if you go over the credit limit or even get close. If you don't handle the account in the correct manner, you are only hurting yourself and costing yourself money. You have the control... use it. Simple.

All you have to do is call customer service and they will give you your current balance. The fees only assess once a month on the billing date. So the balance they give you is current and up to date. Call them, cough up the $11 to pay over the phone, pay the balance, and close the card. Or keep it open and don't get so close to the credit limit. Just because you have the balance available doesn't mean you should use it. Balances are also reported to the credit bureaus and you should try to keep your balance under fifty percent of your credit limit. Fees are only assessed to the account if they are applicable. You can control when you send your payments, how much you send, and if you go over the credit limit or even get close. If you don't handle the account in the correct manner, you are only hurting yourself and costing yourself money. You have the control... use it. Simple.

All you have to do is call customer service and they will give you your current balance. The fees only assess once a month on the billing date. So the balance they give you is current and up to date. Call them, cough up the $11 to pay over the phone, pay the balance, and close the card. Or keep it open and don't get so close to the credit limit. Just because you have the balance available doesn't mean you should use it. Balances are also reported to the credit bureaus and you should try to keep your balance under fifty percent of your credit limit. Fees are only assessed to the account if they are applicable. You can control when you send your payments, how much you send, and if you go over the credit limit or even get close. If you don't handle the account in the correct manner, you are only hurting yourself and costing yourself money. You have the control... use it. Simple.

All you have to do is call customer service and they will give you your current balance. The fees only assess once a month on the billing date. So the balance they give you is current and up to date. Call them, cough up the $11 to pay over the phone, pay the balance, and close the card. Or keep it open and don't get so close to the credit limit. Just because you have the balance available doesn't mean you should use it. Balances are also reported to the credit bureaus and you should try to keep your balance under fifty percent of your credit limit. Fees are only assessed to the account if they are applicable. You can control when you send your payments, how much you send, and if you go over the credit limit or even get close. If you don't handle the account in the correct manner, you are only hurting yourself and costing yourself money. You have the control... use it. Simple.

You Can Pay for your bill from your checking account and there would be no processing fee

Take your balance. Add all the interest from your last statement. Add an overlimit fee (if you were overlimit on your statement). That is the best way to pay it off. You will probably have a small credit they will owe you, but that is the best way to pay it off. Not that I condone having a credit balance with them, but unless you are a math whiz, you are better off. And, no offense, but you are probably not a math whiz since you keep having an overlimit fee. Or, you can pay the balance plus the interest, and not pay the overlimit fee. However, make sure if they charge you an overlimit fee next statement (for being overlimit this month) that you pay that. Then, the following statement will probably have interest on the overlimit fee from the statement date to the payment date. Then the following statement will probably have interest on top of the interest from the statement date to the payment date, and so on. Gets confusing. The best way to pay it off is not to call and ask. They will merely give you the balance of your last statement. That will not include the interest from your billing date to the payment date, nor will it include the overlimit fee, and you will find you will still owe those amounts next month.

Here in Wisconsin the department is called the financial affairs division. They regulate banks and debt collectors. Most everything can be done online for Wisconsin residents. I am assuming the same idea can be found in your state. Like the last poster said, get the state agency that handles these issues involved.

first premier had to agree to pay back 4.5 millions in a settlement with the ny state attorney general office in 2007. they don't do business in ny anymore i believe. complain to your state's ag office and make them pay.