Direct Merchants MasterCard Interest Rate Hike After Late Payments

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Post subject: Screwed By Direct Merchants Master Card

IN_2_DEEP
Date: 11/27/2000 4:46 am CDT

I recently obtained a Direct Merchants Bank Master Card because I'd had some credit problems and needed a card. I missed a couple of months payments, mostly due to procrastination and suddenly my interest rate is up to an unbeleivable 32%! This certainly seems illegal, but when I re-read the small print I found out they could do this. Now I'm strugglng to get the minimum paid, but with a $29.00 late fee plus a 32% interest I am getting royally screwed. Any ideas?

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GEORGE
Date: 11/27/2000 7:51 am CDT

PAY IT OFF AND GET A REAL CARD

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Ray
Date: 11/27/2000 9:04 am CDT

I would contact your better business bureau of your state.
They may be able to intercede on your behalf; if not, contact your state banking commission.

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Linda
Date: 11/27/2000 9:22 am CDT

You didn't pay them!!!

I don't mean to sound mean, but it states right in their disclosure what they will do if you don't pay on time. Not to mention totally missing 2 payments. What do you think they are? A charity? Jeepers!

I don't think you have any recourse at all. Whe you used the card, you accepted their terms. Tighten your belt and make the payments. You asked for it.

If you choose to handle credit by being an irresponsible child, with a "victim" mentality, it will get you exactly this same place over and over again. Grow up.

Linda

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ng
Date: 11/27/2000 3:40 pm CDT

I agree with Linda!
I have a Direct Merchants Bank MC and it is a real card!

I have a great rate 11.9% and 3.9% purchases for 6 months.
I also have others Citibank etc. and I would not give up my DMB card.
I always pay on time and their customer service has been great thru the years.

I had a Best Buy card for many years that is now issued thru Household Retail Services (now they can be bad)!
My payment made it 2 days late for 2 months (so they claimed), they have closed my account, ended my promo and it is now @ 27%.
There is no talking to them I have tried. They stated it was listed in the contract I signed to do this. That account was not with them when I received it nor do I remember anything to that effect.
My Xmas goal is to transfer it to another account.

I will miss that card with the special promos.
Sorry so long........

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Board Monitor - CA
Date: 11/27/2000 5:29 pm CDT

IN_2_DEEP,

Thanks for your post! Take a look at the following news blurb:

http://www.cardweb.com//cardtrak/pastissues/may00.html

The definitely have one of the highest rate cards in the country if you are late on payments (the above article is dated May 2000, and at that time they had the highest rate in the country).

While I personally feel that the 31.99% rate is quite excessive, they did disclose the rate information to you. Let us know how things turn out.

Best Regards,
Curtis Arnold
CFCCT P.R. Director
http://www.cardratings.org

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IN_2_DEEP
Date: 11/27/2000 10:34 pm CDT

I know it's my fault for not making payments on time, but I think the rate is excessive. Watch "It's a Wonderful Life" sometime. Your attitude sounds like Mr. Potter. It's just tough when you're struggling to get by and the company increases the charges. It just doesn't seem fair that when a person can't afford this payment, the company can say "hey, they can't make that payment so let's charge them even more!". I will get through this. Looking for Clarence right about now.

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Linda
Date: 11/28/2000 0:00 am CDT

You don't need your hand held, you need your butt kicked.

There is enough trouble in life without you doing things to bring it on yourself. Experience is a hard teacher, but the lessons are thorough.

Linda

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IN_2_DEEP
Date: 11/28/2000 2:10 am CDT

Been kicked already. I'm married. My wife and you seem to have alot in common!

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Linda
Date: 11/28/2000 9:40 am CDT

Oh okay, since the butt-kicking position has been filled, I withdraw.

I agree with ng, you don't have anything to lose by talking to them. Maybe they will try to accomodate you. I know I called them one month when I had lost my bill, and it was 1 day past the due date. I did the telephone payment thing, They waived the late fee, and did not seem to hold it against me. I was very careful after that, and registered to pay it online, so I could keep track of the bill without worrying where the piece of paper was.

Good luck.

Linda

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ng
Date: 11/28/2000 6:16 am CDT

Hey I feel for you!
I am dealing with the same thing from HRS.
I do know how DMB works and if you can find a way to pay down your balance they will work with you. especially if they think you are paying it off or closing it)
My card started out w/ a fee attached & small credit line.
It now has a rate equal to my Citibank card.
They do not like to loose customers and can be most accommodating.
It has always worked for me.
But as with MOST, if the see you are in trouble, look out the high rates kick in.
Some companies do not wait for a late payment. They just check your credit report and slam the higher interest on.
How fair is that?
just my 2 cents

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Eugene
Date: 11/28/2000 10:06 pm CDT

> Hey I feel for you!

I don't. I would understand if it happened for reasons not depending on him, but missing a couple of payments "due to procrastination"? What else did he expect?

> Some companies do not wait for a late payment. They just check your credit report and slam the higher interest on.
How fair is that?

Who said credit was fair? If you know how to use it, it's convenient, liberating and helpful. If you don't, it's the opposite of those. In either case, it's an obligation, and if you don't understand that, creditors will make you understand. It's as simple as that.

Eugene.

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Tim
Date: 11/30/2000 2:11 pm CDT

*screwed by not reading the fine print!

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