Providian was told by regulators to strengthen its overall credit risk. They do it by getting rid of customers who they consider to be high credit risks. Charging these customers 30% APR will: (i) boost their cashflow; (ii) get more of these customers to close their accounts. Both of these would help Providian accomplish what the regulators want them to. Sending the 30% APR notice was indeed their way of saying "we don't want your business. If you still want to keep your account, here's a 30% APR offer that will change your mind". Close your account with Providian TODAY. This will benefit both parties. Saar
This may be STUPID...but wouldn't they get MORE business if they REDUCED all the rates to say 9.99%??? They could even make the MINIMUM payment 5% of the outstanding balance...
When I called to close my accounts, I asked the woman if they were doing this just to speed up the bankruptcy process, the woman said AND I QUOTE We are one of the most stable credit companies in the US OMG, what a great laugh she gave me.
Did you read my letter from the "DEAD" NEXT CARD??? I was looking for "INSIDE" information about the sale of my account to another credit card company...
They do offer 9.99% APR: http://www.getsmart.com/NASApp/gets...tCard/pgGSCardJump&click_id=ApplyNow#platinum But certainly not to high credit risks, which they're now trying to avoid, to satisfy regulators' requirements. Saar
I was just WODERING why they would think that 29.99% is something ANYBODY would pay!!! Even somebody that is "DESPERATE" would DUMP IT!!!
I'm not too sure if I agree with the idea they are dumping their high risk customers. Several people have been good customers for years, and since I had their card, my scores have jumped into the near 700's with good ratio's, etc. I can see them selecting a line of cards, not caring who was in them or not; perhaps the lines they bought from others (ie Aria). This whole thing really irritates me. Stable credit card company, my butt. That must be on their script too.
Their criteria for rate increases is absurd, no rhyme or reason.. Providian has been pissing me off for some time, I havent even gotten a rate jack, and I still detest them, but really we cannot blame the customer service reps, they are told exactly what to say, and they must toe the company line, (if they say certain things not in step with the corporate propaganda, they will be disclipined) they just want to get their paycheck, who can blame them? Providian is beyond stupid though.. well even Cap1 makes the same mistakes, like when I get a 2nd card from the company after 2 years perfect on the 1st card, so I ask for better terms... "no sorry, you must wait unitl 4 months pass, so we can see your pay history".. pay history? what about the other card I have with you company???? USE YOUR BRAIN, YOU SUB-PRIME TRASH!!!
Exactly. I worked at a call center for a while and know how hard it can be when the company drops the ball and the CSR's have to take the heat. As I stated earlier, these are people who also will probably be facing lay offs....a natural occurance when you greatly decrease your customer base. I will be keeping my card, (cut up however) but only because there is no balance and no longer a fee (unless they decide to reinstate it!) -free credit ratio points.
Just got my MC Providian statement. No APR hike just fee hikes. Should be getting my Plat. Providian statement next week. Will keep the board posted. Best regards, Mirage
Please, everybody, DON'T close the accounts. That's what they want you to do. Please pay off the accounts if you can, and leave them open if it benefits you. That way, you help yourself and hurt them. They are malicious, predatory people who deserve to be hurt. And don't feel sorry for the CSR's. Many of them are rude teenagers who need to find other jobs. I have been appalled at some of my calls to Providian, plus I worked there about ten years ago and know exactly how greedy, arrogant, and thoughtless many of them are.
If they think by raising the APR to 30% is going to slowly push out the high risk card holders, I think they are mistaken. Several friends of mine are CONSTANTLY paying their CC's late (even after my attempt at fixing their credit). After talking to them, I found out all of my friends are going to the 30% rate, and you know what? They don't care. They are willing to pay the 30% and then some. And these people have balances of at most $1000, that can be paid off easily considering their income. Before I started learning about credit, I never even KNEW what my APR's were, or what APR meant. So for the most part I think Providian will only lose people who have moved to prime, or sub prime creditnetters
I appreciate your candidness here. I have been going back and forth on whether or not to close mine and hubby's accounts since I first read about the hike here on the board. When I got the letter, my first thought of course was "of course I'm going to close it!" I think it was George who said something like "why on earth would anyone pay that?" He's right, but it's a major deal to those of us struggling to age some lines and build better credit. I'm only one year out of my bk and I got Orchard and Providian and thought "ok, this will work, these will help build me back up". Now, I think even a post bk person shouldn't have to be taken advantage of this bad. You're right, I'm going to pay it off next month and let it just sit. If I do use it I'll pay it off online before the next statement cuts. Why should i LET them take advantage of me. But I do feel for the people with higher balances with them. My limit is only 1K, so I'm pretty thankful now. I did have this happen to me with FUSA. They hiked me way up after I was carrying a pretty good balance on their card. I know it feels pretty rotten. But emotions aside, I have use my head and keep them for now and just be smart about it. Thanks for the advice.
That's me. One minute I'm closing it never to have another Providian product and the next I'm getting rid of the balance and leaving it open but not using it unless I pay it off before it cycles. I just bt'd everything from Providian to Direct Merchants. The rate is 12.99%, which is still way too high, but considering it was at 23.99 and going to 29.99, I think this was the route to go. Now my only concern about leaving these cards open (they are my oldest tradelines) is the annual fee. I don't want to pay $79 a year or $59 a year or whatever it is for cards I don't use. Any chance that they might waive these fees when the time comes? Also, I'm wondering if the rate will go down in a few months, or if in a few months I could call and ask for a lower rate based on a prime credit report. Suggestions would be greatly appreciated. L
My only concern with keeping the account open and not using it is forgetting about the card in general (assuming I quit using it to auto pay the cell phone or something)....and then, 8 months down the road...I get another letter stating that "due to your unprofitable account, or lack of use, or this-that-or-the-other, we are closing your account". Then I get an entry on the bureau saying "closed by credit grantor"--and we all know the repurcussions of that... I just don't know I trust them enough at this point to even keep the card period... Thoughts?? David
But how often does this really happen? I know it has been discussed, but I don't recall anyone coming out and saying it had happened to them. L
Maybe it doesn't...maybe I'm paranoid...maybe I'm overreacting....maybe these voices in my head will stop soon... Is this a legitimate concern...folks? See ya after supper. David
