1st USA

12/96 - 5.90%
1/97   - 5.90%
2/97   - 5.90%
3/97   - 5.90%
4/97   - 5.90%
5/97   - 12.99%
6/97   - 12.99%
8/97   - 12.99%
9/97   - 20.99%
10/97 - 20.99%
11/97 - 20.99%
12/97 - 20.99%
1/98   - 20.99%
2/98   - 20.99%
3/98   - 20.99%

I put my trust into this bank, and thought they would honor the interest rate we agreed upon, 12.99%.  As you can see this lasted a whole four months.  I have made every payment in full, never late, and mostly above the minimum payment.  So, why the raise in the interest?  Well, I called their customer service department, and talked to a supervisor.  In summation, all she said was "All we have to do is notify you 60 days prior to raising the rate, we notified you we were changing you to a variable rate."  They said that they notified me. And I found out how. In my latest statement- among all those little ads to buy this or that- was a little pre-printed form.  This leaflet was so inconspicuous that I must have just pitched it in the trash along with the other ads.  There was never a reason given to raise the rate, but it was obvious by the manner in which my call was handled, that this was a common practice.  They were nice enough to offer me a reduction in my rate to keep my business - a whole half of one percent.  Wasn't that mighty nice of them!  I told them to stick it where the sun don't shine.  I have now decided to start credit card surfing - continue to switch my balances to these cards that offer a low introductory rate for a year, then switch once that introductory rate has expired.
    In my opinion, 1st USA has very unethical and deceiving business practices.  And, in my mind, that is their way of doing business.

New Scam -  My payoff check was sent in 5 business days prior to the due date, enclosed was a letter requesting to close my account.  Ironically, all payments made this close to the due date were posted to the account by the due date.  However,  since I requested to close the account, it has not been posted, and I have been assessed a $25.00 late fee.  According to the terms and conditions of the card sent when I applied, there is only supposed to be an $18.00 late fee.  I know it's only a $7.00 difference, but 1st USA needs to follow their own guidelines.  Plus, it is quite obvious that my payment has been purposely delayed from being posted due to my intent to discontinue service with them. Another way for them to scam a late fee and more interest from me.   Just goes to prove...they'll screw you to the very end!

3/27/98 - I just received my new 1st USA statement.  After sending a letter to them, the BBB of Delaware and the FDIC, all of my excess finance charges, over limit fees and late fees were credited back to my account.  However, the statement did not reflect a change in my interest rate.  I don't care, because I immediately called, requested a refined check, and closed the account.
( I had transferred the outstanding balance to a new card. Huntington Banks, interest is a variable rate that runs 1% over prime.  Prime currently is 8.5%, and hasn't been over 17% since the early 80's, and only for a few months.)
So, there is hope for people with the same situation. The system does work.

4/2/98 - I received a letter from 1st USA Cardmember Advocacy Specialist acknowledging receipt of my complaint with the BBB.  She reviewed my comments regarding their 'repricing' policies. (See letter from employee on '1st USA's Unethical Business Practices' link below) They reviewed my account and found no reaon to have repriced my account.  They state the interest rate has been dropped to 4.9% until 9/1/98, then to a FIXED 12.99%.  I say "Too little, too late."  If they would have done this on the first, second or even third time I called to complain, I may have considered the offer.  But after the lengths I had to go through to get 1st USA to take action, they lost a customer for life.  And I hope by posting this web page, a few more may make a similar decision.

My telephone number is (302)324-2880.
Fax--(302)324-2849
Email: jepstein@wilmingt.gannett.com
Address: 950 W. Basin Road
New Castle, DE 19720

Thank you for your assistance.
Sincerely,
Jonathan D. Epstein
Staff reporter
News Journal, Wilmington, DE

If you fit the following description, please contact the lawyers who are
suing First USA in a nationwide class action lawsuit.

1)    You were promised an introductory rate, with a "fixed rate" thereafter,
        by FUSA or Banc One;

2)    Despite being promised a "fixed rate", your rate increased;

3)   This change in rates occurred before January 1998 or it was after that
       time but you don't believe it was because of late payments.

IF YOU FIT INTO THIS CLASS, PLEASE SEND AN E-MAIL TO knoll@igc.org STATING THAT YOU WANT TO HELP PROTECT CONSUMERS FROM FUSA AND BANC ONE.  THANKS FOR YOUR HELP!
***** Check out our new address/numbers*****
Knoll Lowney
Smith & Lowney, PLLC
2317 E. John Street
Seattle, WA 98112
Main line      (206) 860-2883
Direct line    (206) 860-2976
fax                 (206) 860-4187
knoll@igc.org
 
 

Here are some other sites worth visiting on this matter: (Funny, these stories ring a bell.)
The Rip Off Report
1st USA's Unethical Business Practices
webBbox - First USA
Beware of 1st USA Visa Gold Card - Got Nuked - Probably by a certain Credit Card Company's Lawyers!
Kiplinger's Personal Finance Magazine - Gotcha! - November 1999

Letters  Examples  of other consumers with similar experiences.
 

If interested in pursuing some action with the FDIC,
a customer assistance form is available at
FDIC: Consumer News
(You will need Acrobat Reader, which is free,
and can be obtained from a link on their site.)

And to file a complaint with the BBB,
you can submit an online complaint at:
Better Business Bureau Complaint Form

If you have had a similar experience, Send Me E-Mail   and I will put it on this page!
 (Or if you would like to know what I did to get my interest refunded!)
 
 

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