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Be Aware-More Scams
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Posted by edatthebank
(198.252.245.195) on April 16, 2003 at 19:53:16:
SCAM 1
Providian Bank has been targeting people who are having credit problems and offering them easy to get credit cards, knowing full well that once they sign on, they will most likely have trouble paying each month. Then the customer is charged late fees and over limit fees that, in a month or two, usually amount to more than the $100 or $200 credit limit that they were given. There was a class action suit against Providian, in California I think, and Providian had to pay. Providian fired their old CEO and brought on board a new CEO who promised to do business in a better way and not take advantage of people who could not afford to pay their bills. Apparently that only meant that they would do this in that state. Providian is still acting the same old way in all of the other states, taking advantage of people who cannot afford to pay their bills. Investigation in the California suit showed that Providian was formed just for that purpose-to take advantage of people who could not afford to pay their bills. Even if you send your payment in plenty of time, Providian holds your payment and does not credit it to your account until after the due date. Then they charge you a large late fee. After several months of holding your payment and charging you a late fee, you will soon be over limit and they can also charge you a high over limit fee. If you have a Providian credit card and you are being charged overlimit fees and late fees and other fees, contact the state Attorney General in your state and let them know about your case. SCAM 2
Settlement offers to accept a lower balance than you actually owe sound tempting, but are not to your advantage. It will go on your credit report that you did not fully pay your bill and it will hurt you getting credit at a later time. Many of these offers go out around tax time when there may be refunds coming to you. They also do it at holidays when you might be getting cash gifts. The credit card companies usually don't tell you this. They just want to get you off of their books and get the most money that they can out of you.
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