Credit Tips: Direct Merchants Bank Credit Card Review

Posted On: January 1, 2006

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Posted: Thu Sep 30, 2004 9:27 pm
Post subject: Direct Merchants Bank Credit Card Review

Jim
Date: 2/5/2001 10:12 pm CDT

I have a credit card from direct merchants bank with very high rates. One
> rate for cash advances and one rate, a lower rate for purchases. Last
> september, i had an emergency out of country where i had to take a flight out
> of country to attend a funeral. I took a cash advance on my credit card in
> the event I would contribute to funeral expenses etc. I charged my airline
> tickets plus the cash advance. I did not use the cash I took as a cash
> advance. When my billing statement came, I wrote a check for my normal
> payment plus added the cash advance money amount to the check. I wrote on
> the check and coupon enclosed to apply the portion to the normal payment and
> the balance to the cash advance. This was not done. I telephoned the
> company and they said that they pay the lower interest rate first regardless
> before they apply anything to the higher cash advance rates. Needless to
> say, I was charged $80 for the initial advance, plus the $50 montly interest
> on this money which I ended up not using. I was told that in my disclosures
> it clearly indicated that that’s how it works. I do not see where the
> disclosures state that that is how it works. I see that they disclose how
> the interest is calculated seperately for purchases and cash advances but
> nothing on how the payment is applied. Any help or suggestions?

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Posted: Thu Sep 30, 2004 9:27 pm
Post subject: Direct Merchants Bank Credit Card Review

Linda in VA
Date: 2/5/2001 11:03 pm CDT

Hi Jim,

Bad news, it’s not a scam, they all do that.

Linda
http://chesapeakesassociates.cjb.net

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Posted: Thu Sep 30, 2004 9:28 pm
Post subject: Direct Merchants Bank Credit Card Review

Brandon
Date: 2/6/2001 2:11 pm CDT

I have encountered this problem many times. Issuing creditors disclose how your payments are applied in the terms and conditions on the account. Many people get angered by this but it is usually always provided in black and white how your payments are applied. Which is generally to lower interest rate promos, purchases…etc.