- Report: #121672
Complaint Review: Household Bank - Mastercard - BALTIMORE Maryland
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Household Bank - Mastercard
P.O. Bx 17051 BALTIMORE, 21297-1051 Maryland, U.S.A.
Phone:
800-660-7332
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Household Bank Mastercard, Household Credit Services, Lies What Your Credit Limit Actually Is! Rip-off! Baltimore Maryland
Household Bank Lied to me about what my actual credit limit is. My stated limit on my card and statements have always said it was $400.00. Around the middle of September, 2004, I had a zero balance on the account. I decided I needed $400 cash, so I took out $400.00 from my bank from off of Household Bank credit card. I have always had all my credit cards paid through an automatic debit, which I don't really pay close attention to, as to looking at the statements from month to month.
I have a number of credit cards and one day I decided I was going to call them all and find out what the limits were and how much I owed. Instead of an automated response when I called I got a person come on the phone, telling me that I was over my credit limit and that I owed far more than $400.00. I said that I wasn't, that I only took out $400.00 which was my limit. She said the limit was really only $350.00. I told her this was a rip-off. She could have cared less. Yesterday, Dec.6, 2004, I went on-line and saw the following statement:
Current Balance $493.51
Available Credit $-93.00
Last Payment Amount $30.00
Last Payment Date 11/16/2004
Payment Due $115.51
Payment Due Date 12/17/2004
I immediately right then and there paid it totally off online on their website. I looked at the statement that I had received in the mail and as you can see above, it not only said that within the span of 2 months of taking out the $400.00 I now owed $93.51 in extras fees.
I saw that in the next billing period, I would be automatically charged $99.00 for annual fees and that if I wanted to cancel their card, I had to put it in writing and pay the balance within 30 days of the next billing period.
I called them this morning and thankfully got a very courteous customer service rep. and related to her that I had paid it in full last night online but would they hold me to the putting it in writing within 30 days, that I wanted to cancel the card.
Thankfully she told me that she'd process it right away. She asked me if the reason I was cancelling their credit card was because of the annual $99.00 per year fee (which means that I'd be paying $99 a year for absolutely no reason at all with only $350 worth of credit - which actually means that Household Bank was really only giving me $250.00 of credit a year.
I must have had a screw lose when I applied for that rip-off card, including finance charges)But I told her "No, that's not the main reason why I'm cancelling, I'm cancelling because it has always stated in writing that my line of credit is $400 - which is deceptive and a blatant LIE - because it's really only $350.00.
Household Bank is just preying and praying for people to approach their credit limits - I did not exceed my limit - but they said I did and kept outrageously charging me. I encourage anyone who owes them money, pay them off as quickly as you can and get rid of their card, as they will start charging you as quickly and savagely as though it's a forest fire in a draught!
Betty
Geneseo, Illinois
U.S.A.
I have a number of credit cards and one day I decided I was going to call them all and find out what the limits were and how much I owed. Instead of an automated response when I called I got a person come on the phone, telling me that I was over my credit limit and that I owed far more than $400.00. I said that I wasn't, that I only took out $400.00 which was my limit. She said the limit was really only $350.00. I told her this was a rip-off. She could have cared less. Yesterday, Dec.6, 2004, I went on-line and saw the following statement:
Current Balance $493.51
Available Credit $-93.00
Last Payment Amount $30.00
Last Payment Date 11/16/2004
Payment Due $115.51
Payment Due Date 12/17/2004
I immediately right then and there paid it totally off online on their website. I looked at the statement that I had received in the mail and as you can see above, it not only said that within the span of 2 months of taking out the $400.00 I now owed $93.51 in extras fees.
I saw that in the next billing period, I would be automatically charged $99.00 for annual fees and that if I wanted to cancel their card, I had to put it in writing and pay the balance within 30 days of the next billing period.
I called them this morning and thankfully got a very courteous customer service rep. and related to her that I had paid it in full last night online but would they hold me to the putting it in writing within 30 days, that I wanted to cancel the card.
Thankfully she told me that she'd process it right away. She asked me if the reason I was cancelling their credit card was because of the annual $99.00 per year fee (which means that I'd be paying $99 a year for absolutely no reason at all with only $350 worth of credit - which actually means that Household Bank was really only giving me $250.00 of credit a year.
I must have had a screw lose when I applied for that rip-off card, including finance charges)But I told her "No, that's not the main reason why I'm cancelling, I'm cancelling because it has always stated in writing that my line of credit is $400 - which is deceptive and a blatant LIE - because it's really only $350.00.
Household Bank is just preying and praying for people to approach their credit limits - I did not exceed my limit - but they said I did and kept outrageously charging me. I encourage anyone who owes them money, pay them off as quickly as you can and get rid of their card, as they will start charging you as quickly and savagely as though it's a forest fire in a draught!
Betty
Geneseo, Illinois
U.S.A.
3 Updates & Rebuttals
Mike
Radford,Virginia,
U.S.A.
Fees...Fees...Fees
#2Consumer Suggestion
Sat, January 08, 2005
There is nearly always a cash advance fee. Usually it is 3% of the cash advance, perhaps even 5%. So when you advanced the $400, your balance went up immediately to $412 or even $420 -- over the limit. At the end of the billing cycle, an over-limit fee of perhaps $30 was applied. Also interest starts immediately on cash advances, and usually at a higher APR than the regular purchase rate. A few more dollars in finance charge and now you're maybe $40.00 over the limit. The minimum payment is increased by any amount over the limit. If you only paid $30.00, that's not enough to meet the minimum. Even though you paid on time, you didn't pay enough, so a late fee is tacked on. You can see how a few months of this can add up to hundreds of dollars. Your actual credit limit was $400, but the useable credit limit is less. If the cash advance fee were 5%, then you could only get about $373.00 in cash without going over the limit. This allows for the cash advance fee ($18.65) and 30 days of interest at 24% APR ($7.83). The closing balance would be just under $400.00 then. Going right up to the limit is never good. It's a sign that you're desperate, and they will act accordingly. Always think of the credit limit as just a figure. The actual amount you use should be at least $100 less to allow for any fees.
Jonathan
Santa Rosa,California,
U.S.A.
Drawing cash from a CC
#3Consumer Comment
Fri, January 07, 2005
Using a Credit card to withdaw cash can be a very bad thing. Not all companies, but most I have dealt with will give you a lower available ballance to be abel to draw cash from than you actually have if you use it as a credit card. This is probably where you ran into problems. Not only will you have less balance for cash advances, there is usually an extra finance charge on top of your regular charge for cash advances. It is nice to have in case of emergencies, but not wise to use if you can help it. Read through the terms for your Credit card, it usually states it in there. It should also say on the satement somewhere what part of your balance is available for cash advances.
Tam
Disneyland,California,
U.S.A.
Big mistake
#4Consumer Suggestion
Fri, January 07, 2005
Hello Betty, Well, I have household bank credit card with so and so limit. The thing is, I was taught to NEVER, use a credit card to CASH OUT. Thats where they'll get you the most besides of what their interest rate is. I just hope this will help you out and all others..."DO NOT CASH OUT ON ANY CREDIT CARDS! REGARDLESS!"
