Last month I applied for a Providian Visa card over the phone. I spent 10 mins with the application lady and she told me I was approved for a Visa Gold with a $300 credit limit. I was then told I would receive an activation certificate in a week or two. Sign it and mail it back with a $49.00 fee and she also told me during this time I would receive my new Visa Gold but the card can't be used until they receive their $49.00 fee. I mailed off the fee and about 4 days later I called and they told me my card would be active on November 8 because they received the $49.00 fee on the 1st of November 2000. On November 8 I tried using my card and it came up declined. I called Providian the next day and they said 'Oh, looks like we need to confirm some information with you' Ok, your account is ready to use. I attempted to use my card the following day and now it came up as 'call in'. The next day I receive a letter in the mail stating 'Your account is closed, do not use your card it will be taken from you' They give me NO EXPLANATION except they have my $49.00 money order which they cashed! I called Providian and they wont give me any reason except that the security department closed my account permenantely. They say my $49.00 fee will be refunded within 90 days. I wonder if they are just using people to get their $49.00 fee from? They get $49.00 from 100K people and hmm.. they have a lot of money. Tomorrow morning (November 13, 2000) I am calling the San Francisco District Attrney's office and filing a complaint againt Providian. A bank doesn't approve an application which I have in writing and send out a card then close it for no reason and wont tell a customer why. I smell fraud! A very unhappy Customer Kevin Yaeger
This is interesting? I see your point BUT.....I am under the impression (from the information from this board) that banks can do whatever (within reason of course). They can *refuse service* to anyone for any reason (someone correct me if I'm wrong). What I mean by that is, say John Do who is shopping for the best interest rate on a card, applies for Capital One Platinum. He has perfect credit and under normal circumstances, he would get a card no problem....BUT....since on his bureau it shows that he has done some "card hopping" (indicating that he just goes from card to card to get a good deal), Capital One decides that he won't be a good customer for them, hence they deny his app and give some lame excuse! I don't think that there is nothing that you can do if they refund you your $49 dollars. Now, if they don't refund your money, then that's a different story??? What time frame (if any) do they have to return your money? I have no clue.... $49 from 100k IS a lot of money but I doubt that they could do that and get away with it???? But you know while they are *slowly* returning your money, they are collecting interest on it!!!! Humm......now there's a thought! I would call them back and ask to speak to a supervisor in the fraud dept. and find out exactly what is going on. Maybe there is some kind of mix-up????
Just for FYI, Card Hopping is reported via something called a KITING report. It's somewhat similar to FICO in that it is scored, but I'm not sure what the criteria is. Any one care to elaborte on KITING?
It is very strange the "SECURITY" department got involved. Perhaps you may want to check your credit report to make sure your account is not flagged or your social # is being stolen.
WHAT ARE YOU ELUDING TO??? BALANCE TRANSFERS ARE ILLEGAL??? YOU HAVE A 21.0% AND BALANCE TRANSFER AT 9.90% FROM CARD NUMBER TWO TO PAY CARD NUMBER ONE OFF...ILLEGAL??? I think you are refering to is checks not credit cards...deposit $500.00 from account A into account B and then back again, but you don't have the $500.00 to cover either account. IF YOU WERE APPROVED FOR THE ACCOUNTS AND THEY OFFER BALANCE TRANSFERS...AND USUALLY REQUEST THAT YOU USE THE BALANCE TRANSFER...NOT ILLEGAL!!! THEY ENCURAGE IT SO THEY CAN STEAL BUSINESS FROM OTHER CREDIT CARD COMPANIES!!!
Hooray Terry Hallinan San Francisco DA Hallinan got a $300 million settlement out of Providian by himself, and then the FTC and CA AG signed off on it. California AG Lockyer sits on his fat a-- and does nothing. What good is he? Kevin- I'm glad you know to write to Hallinan. Writing to the FTC and the CA AG couldn't hurt. Thoughts?
Kiting Kiting is a term used by banks to refer to frequent balance transfers. The most common use of the phrase is "check kiting" in which someone has two or more checking accounts, and writes himself (and then bounces) checks. Such an activity constitutes fraud. Of course, frequent balance transfers from one card to another are not illegal, but could be used for fraud (transfer a balance, then get a cash advance from the old card, then go bankrupt). It isn't suprising that a certain number of balance transfers alert a bank's security folks, and lead them to decline credit to those they decide represent a greater risk of fraud.
