(this is for whyspers and everyone else whose Providian accounts were just trashed) I got a letter TODAY from Providian stating that my account will be closed TOMORROW. I saved them the hassle and closed it myself. What I found strange was the ADDRESS of Providian: Providian Bank Customer Service P.O Box 9201 Old Bethpage, NY 11804 As we all know, Providian is based in San Francisco, and our bills come from New Hampshire. Now here's where it gets interesting... Providian said that my account was being closed because of information they obtained from a TU report. Providian never pulled TU - not since last November. After digging a little, I pulled a free TU report just to check the inquiries - and sure enough, no Providian inquiries. BUT, there was an odd one there in the AR inquiry section - from MERRICK BANK. I don't do any business with them, but I decided to go to there website. Guess what their address is: Merrick Bank Customer Service P.O. Box 9201 Old Bethpage, NY 11804 So this explains it - Providian sold my account to Merrick, and Merrick doesn't want my business. Go figure!
YOUR TOO GOOD FOR THEM!!! That is what happened to all us NEXTCARD customers (we were NOT good enough for MERRICK)!!!
what was the month of the inquiry? I was told you'd get 30 days to cancel... so I guess you got no notice from Providian?
Very interesting seems that Cardworks is the affiliate/subsidiary company for Merrick Bank.... Merrick Bank -- a South Jordan, Utah, subsidiary of CardWorks Inc. -- bought part of the portfolio of NextCard (OTCBB: NXCD), the Federal Deposit Insurance Corp. said July 2. The agency didn't say how much of NextCard's portfolio of 1.2 million accounts and $2 billion in receivables the sale represented. The FDIC has not found a buyer for NextBank's interest as transferror and servicer of the NextCard Credit Card Master Trust. It's the second time in three months that CardWorks has tapped the accounts of a struggling San Francisco-based credit card firm. In April, two companies formed by affiliates of CardWorks, Goldman, Sachs & Co., Salomon Smith Barney and CompuCredit Corp. agreed to buy $2.4 billion in high-risk assets from Providian Financial Corp. So it looks like Merrick is the one closing these accounts--very good usage of the address match up
The inquiry was from 08/2002. I got a letter from Providian back in April about the now-infamous APR increase, but nothing about 30 days to cancel. If I sound a little pissed about this, it's because I am a little pissed. Like most of us, I'm trying hard to get my credit back in shape. I screwed up years ago, but for the past 4 years - nothing negative. With Providian, perfect account history simply doesn't matter. They've screwed a lot of people, and it's just not right - but they'll get theirs...
1.7 million people to be exact. and for what, to improve their balance sheet. here is the press release: Providian Announces Higher Risk Portfolio Transaction Plans SAN FRANCISCO, Apr 15, 2002 /PRNewswire-FirstCall via COMTEX/ -- Providian Financial Corporation (NYSE: PVN) today announced that it has reached agreements with two limited liability companies formed by affiliates of Goldman, Sachs & Co., Salomon Smith Barney, CardWorks, Inc., and CompuCredit Corporation to initiate a structured sale of approximately $2.6 billion of higher risk assets. The purchasers plan to finance the acquisition through a securitization. Providian National Bank would hold an interest in the securitized assets valued at approximately $155 million, and Providian Financial Corporation preserves an option to purchase up to 15% of the equity in the limited liability companies. The transaction, which remains contingent upon completion of the financing and other customary closing conditions, is currently expected to close in May. "These agreements mark another important step in our restructuring effort," said Providian Chief Executive Officer Joseph Saunders. "Assuming successful completion, these transactions will reduce our credit risk profile, improve our ability to focus on the middle and prime sectors, create opportunities to reduce our expense base, and further strengthen our liquidity position." Saunders noted that the potential sale of the higher-risk portfolio was contemplated by the capital plan Providian filed with its regulators. Providian announced its intention to explore opportunities for the sale of the portfolio in November of 2001. The transaction involves approximately 1.7 million credit card accounts. Providian generated the majority of the assets in the portfolio through marketing programs that it has since discontinued. Under the terms of the transaction, Providian would continue to service the portfolio for a period of up to 12 months. Providian currently holds substantial capital and reserves against the assets in the portfolio. While closure of the transaction would result in an after-tax loss of approximately $240 million based on current estimates, the transaction should also result in an improvement in Providian National Bank's risk-based capital ratios (as calculated under regulatory guidance for subprime assets) by removing higher risk-weighted assets from the Bank's balance sheet.
Oh great. I never check my TU report... 8/2002 AR-Merrick Bank now... as far as I know I have no account with Merrick bank. In fact, I just called Providian twice and was told my accts are still with them... so I'd like to know why Merrick is in my credit at all. And... on top of it.. I've now got another "home address"... I think it's coming from them. Morons. welll... another company to sue Law school tuition will be paid in full in another few months at this rate
Yup...my TU was pulled by Merrick. How can they do an account review at this point when I do not have an account with them? :::sigh::: Its probably in the fine print somewhere, right along with their right to raise interest rates upon notice and along with the fact that when you accept the card you agree to arbitration. L
Hey Marie, your going to law school? May I email you with some questions? I am considering law school and have a few questions regarding loans. Sirrowan
They pulled my TU also, but I received a pre-approved credit card offer from them about a month later... no doubt that there exists some link between the Providian cancellations and Merrick, but I don't think getting a Merrick inquiry on TU necessarily means that your Providian accounts will be closed.
There are two different sections for soft inq's. The second section is for companies who want to make an offer of credit. The last section is for A/R from companies who you already have an account with. So if Merrick is listed on the last section as an A/R and you have a Providian then I would say there is definitely a connection.
I have a TU inquiry from Merrick bank and I also have one from Compucredit on my EQ report. I know I don't want to do business with either company. Still waiting for some type of letter....
I used the card consistently every month. With a $1k limit, it was more of a "utility" card for gas, restaurants, shopping, etc. I also maintained a consistent balance and ALWAYS paid early and way above the minimum. Still scratching my head over this one, and afraid to use the other Providian card at this point!
well... I just called Merrick bank... NO info about me based on ssn or Nextcard account. I closed my Nextcard acct in June... so a pull in August is impermissible... esp listed in the acct review section. My intent to sue letter is going out today. As far as I know... in Aug 2002.. I have no affiliation with Merrick Bank.. thus, their pull into my report is completely without legal basis. I want my 1k. AND:::::::::::: Merrick Bank isn't even listed with the Secretary of State in Georgia... so they're not legal in my state and they have NO registered agent in my state. I'm filing a complaint with the state and I'll sue them in US District... I guess... lucky me. Good practice
So how does that work in my case, where I had an account with Providian, then Merrick pulls an AR inquiry? Is that legal? I'm in PA. Merrick is on Long Island. I could use an extra $1k, too!
I remember calling an 800 number which dealt with opting out. My EQ report clearly indicates that my file is blocked for promotional puposes, but there's no clear indication of that on TU.
This mess with Providian is really getting me nervous. I have 2 providian accounts a Master Card with a $2400 limit @23.99% APR with no grace period and an annual fee that I've been able to get waived 2 years in a row. Fortunately, I pulled a GEORGE and BT it to my 0% Chase Platinum. I owed approximately $2k on that card. My Gold VISA has a $5k cl and I owe $3500 @ 16.9% APR, with no grace period and an annual fee that I have had waived for 3 years in a row. As a matter of fact, I got my new card last month and I received the annual fee credit Monday. The last account review Providian pulled for me was in June 2002 and my credit is 1000x better then it was back in 2000! Better tell my Chase card to make room for another Providian BT!
How many other tradelines open? Ratio of balances to credit limits? I'm just wondering "why" they're slamming us!?? I have to call again today. I just decided to go ahead and close it. I have no idea why all of a sudden I have no annual fee, I know I paid $89 when I first got it. And here it is the middle of Oct and she said I should have had my new card the beginning of this month. I bet she just wants me to get closed out rather than me close it myself! Big ol mean lady. Ciao to Providian. Newstdt
