Credit Card Companies Closing
Author: Jim, Guest
Posted: Tue Aug 12, 2003 10:34 am
Post subject: First Consumers Natl. Bank
Dear Webmaster,
FCNB Closed for good in Feb or March of 2003. It would be helpful to post this under FCNB, Eddie Bauer, and the other one I can't remember to let all persons viewing your site that this is what happened to them.
Got a postcard, actually two, one for Visa and One for MasterCard to stop using the card as of a date listed. For the first month or two, you could get someone on the phone. They closed the bank!!! Was able to get info from Bank Officer that they were closed because of too many outstand bad debts and the parent bank (holding company) just pull the plug and that is that. Holding company is now dismantling bank assets and liabilities. I think that they are forwarding mail and just post it when they have time. Hate to say it, but it is probably legal. That is why everyone is getting late fees on accounts that were mailed last month (last cycle).
Interesting note; Citibank besieged me with card offers after the FCNB closing. I quit counting at 10.
Also Direct Merchants Bank is in trouble. "Metris" is taking their phone calls. I have read something on the web that this new company is restructuring and is trying to make the bank profitable. Don't know if they will stay the distance or not. In any case it would be great for someone to place some sort of post whenever a viewer looks at FCNB to explain what has happened to the Bank. This would be a great feature for this board.
Another great feature to have would to post the recent information of the policies of some of the larger Banks that are lowering credit limits if your FICA score drops below a certain point. I have heard that one line is 649 and another 679. This is only for higher limit Gold and Platinum cards. They drop lines from tens of thousands to a thousand or two. No mater how good of a customer is involved. This, in turn caused FICA scores to be lowered even further, due to the scoring methods based on outstanding balance to available credit ratios. Citibank and Chase seem to be doing this, possibly others.
I, and I'm sure a number of people, appreciate having a board like this one to look at and review credit card issuers before applying for credit. Thank you for your time and consideration.
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Posted: Tue Aug 12, 2003 10:34 am
Post subject: First Consumers Natl. Bank
Dear Webmaster,
FCNB Closed for good in Feb or March of 2003. It would be helpful to post this under FCNB, Eddie Bauer, and the other one I can't remember to let all persons viewing your site that this is what happened to them.
Got a postcard, actually two, one for Visa and One for MasterCard to stop using the card as of a date listed. For the first month or two, you could get someone on the phone. They closed the bank!!! Was able to get info from Bank Officer that they were closed because of too many outstand bad debts and the parent bank (holding company) just pull the plug and that is that. Holding company is now dismantling bank assets and liabilities. I think that they are forwarding mail and just post it when they have time. Hate to say it, but it is probably legal. That is why everyone is getting late fees on accounts that were mailed last month (last cycle).
Interesting note; Citibank besieged me with card offers after the FCNB closing. I quit counting at 10.
Also Direct Merchants Bank is in trouble. "Metris" is taking their phone calls. I have read something on the web that this new company is restructuring and is trying to make the bank profitable. Don't know if they will stay the distance or not. In any case it would be great for someone to place some sort of post whenever a viewer looks at FCNB to explain what has happened to the Bank. This would be a great feature for this board.
Another great feature to have would to post the recent information of the policies of some of the larger Banks that are lowering credit limits if your FICA score drops below a certain point. I have heard that one line is 649 and another 679. This is only for higher limit Gold and Platinum cards. They drop lines from tens of thousands to a thousand or two. No mater how good of a customer is involved. This, in turn caused FICA scores to be lowered even further, due to the scoring methods based on outstanding balance to available credit ratios. Citibank and Chase seem to be doing this, possibly others.
I, and I'm sure a number of people, appreciate having a board like this one to look at and review credit card issuers before applying for credit. Thank you for your time and consideration.
View our latest credit card ratings!
posted by CardRatings.com at 10:41 AM
4 Comments:
Author: sisflomi
Credit Expert (100+ Posts)
Joined: 07 Nov 2003
Posts: 134
Posted: Tue Nov 11, 2003 12:41 pm
This sounds like a nightmare for folks that were using the cards. I have read a few stories on this and can't understand how a bank can let things like this happen.
_________________
Sis
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Author: michigangirl530
Joined: 10 Nov 2003
Posts: 17
Location: oregon
Posted: Tue Nov 11, 2003 1:27 pm
sounds good to me mayb i can have more sucess on getting that crap off my report thanx for the info
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Author: karna68
Joined: 10 Oct 2003
Posts: 9
Posted: Wed Nov 12, 2003 10:29 am
Newport News and Speigel were some other companies that had their credit card programs with FCNB.
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Author: nativechild48
Credit Expert (100+ Posts)
Joined: 10 Nov 2003
Posts: 295
Posted: Wed Nov 12, 2003 11:18 pm
Eddie Bauer, NewportNews, and Speigel were all financed under this bank that was owned by Spiegel. They started issuing bank credit cards to people that could not always obtain credit cards do to lack of credit history etc. they were subprime lenders. When their creditors did'nt get paid and the stockholders were not receiving their returns there was a call for records of their assets and liabilities. They ended up in receivership and now those merchant cards are being serviced for the guarantee bank at cardservices in Old Bethpage, NY. Spiegel, Newport News and I think Eddie Bauers went on to become a separate entity and New credit cards for people that want and qualify is with WFNNB. When a corp. goes bankrupt, most people will not pay, but this is a mark against that person's credit if they don't.
Direct Merchant Bank is a predator lender and has committed many violations that the consumer is entitled to under the FCRA and the FDCPA. They are in trouble because they will and have to pay many dollars in fines to the FTC and numerous lawsuits filed on behalf of consumers.
Chase Bank raises interest and reduces credit lines regardless of one's FICO scores ---bait and switch system. FICO scores falls and raises for many reasons such as a house purchase, refinancing, automobile purchases etc. and it would be difficult for a lender to decrease or raise interest on everyone who has a credit card.
Try not to utilize over 30 - 35 % of CL's or try to pay off balances and make payments on time. Credit history play a big part espesially years of credit with FICO. Most lenders know at Xmas time people tend to utilize a bit more credit than usual but the key is a little not a lot.
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