OT: Check your Providian CC statements

[zaph]

I know this is slightly off topic, but it is a big heads up!

To those of you with Providian credit cards, take a minute and read the little " Changes to your account" flyer in your statement.

Apparently, they feel it is necessary to send your interest charges through the roof. My 2 cards with them were about to go to 27.99% and 29.99%, and all fees would be going (way) up too. I have been a responsible customer of theirs for 4 years, have never been late, and have always made substantially more than thier minimum payments, and i have carried a balance on the cards, so it is not apparently a "penalty" rate situation.

According to the CSR at Providian this increase is for ALL accounts, though the rates may vary a bit. The only way to avoid the increase is to close the account before the next billing cycle, and pay off your balance over time at your current interest rate.

:|:|:|:|:|:|:|:|:|:|:|:|:|:|

 

[Scrounger]

In my experience Providian sucks so they are just doing everyone a favor. High interest rates and they don't hesitate at any opportunity to raise your rates, like a payment check that mysteriously took 13 days from postmark to be cashed and resulted in a late fee plus rate increase. I had transferred balances from several cards into one big account with them at a decent intro rate, but then I was unable to get a different credit account because the balance was so high when they started jacking with me. Very clever way to trap you into paying interest. Eventually I got an unsecured loan, gave Providian the finger and never looked back. They also generated a high amount of telemarketing and junk mail, second only to my Wards account in that area.

I've seen some business-section blurbs about Providian closing an office in Nevada and laying off something like 650 workers recently. Combined with these alleged across-the-board interest rate increases it sounds like they are in big trouble.

 

[fekker]

Looks like the increase on my MC from those knuckheads is going up to 23.99% .. tried to call there CS.. waited on hold for an hour.. then the phone rang and rang.. called back.. sorry we are closed.

Will be canx that card as soon as I can get ahold of them..

Thanks for pointing this out, prob would have missed that little blurb in the statement.. what a bunch of bastards.

Wonder if this could be stickyed.. good info for all those getting jacked by them.

 

[Loricariidae]

I once had a Providian account for all of forty minutes. They thought they could automatically give me a CC with an annual fee, and when I called to cancel, they were sooooo generous as to offer to waive my fee for one whole year! Not surprisingly, they are still hella sketchy.

 

[zaph]

If I had to bet, I'm sure that they would be more than happy that the vast majority of thier customers would miss the notice. When they get the next statement, those that notice the JUMP on the rates, and call to cancel, would be told that it was too late to make payment arrangements at thier old rates, but that the company would "generously" offer them a payoff rate somewhere between the old rate and the new one.

 

[Mecheater]

Good freaking lord, that's my luck. I just got my providian card. Oh well.. I pay my dues anyway.

 

[ODYSSEY]

Is this in next months or this month? I didn't get a little flyer thingy in either of the two CC with providian.

ODYSSEY

 

[Pothead]

I had a Providian card for over a year. All of a sudden they feel the need to charge me an annual fee. I cancelled, but they still sent me statements and eventually billed me again for the annual fee, called again, they said they will close it. Same thing happens and finally the 4th time they actually close the acct. Providian is suck. All they can do now is prey on people with bad credit with those advertisements on TV.

 

[jonnashville]

Their stock dove about 70% recently, and they're trying to sell some of their hundreds of millions of dollars of impossible to collect sub-prime accounts (WSJ today).
See Hoover's Capsule.

 

[kyle1745]

Dang that sucks. Time to ditch that card.

Kyle

 

[MissChievous]

I love my Providian CC. They gave me a fixed 6.9% interest rate with no annual fee. Have had that card forever.....they never changed the rate on me, nor the terms. I have to admit though that I rarely charge anything, and that when I do, I pay it off in full immediately. But still..... It is there when I need it.

 

[XFreebie]

providian made lots of mistakes much like enron, which is why both have junk bond status. providian loaned out to ppl who cant pay back, so they're sticking u good credit card holders with the bill (how nice).

arent u glad ppl like me dont declare bankruptcy and leave u all with the bill... in higher credit card rates in this case.

 

[XFreebie]

i finally got an amex blue card but the credit limit is $1100! nothing compared to my $12k limit at citi bank. that reminds me i have to get those free movie tickets i saw posted a while ago. and beats discover which rejected me completely... and i was looking forward to that 1% cash back.

 

[woowoowoo]

<< providian made lots of mistakes much like enron, which is why both have junk bond status. providian loaned out to ppl who cant pay back, so they're sticking u good credit card holders with the bill (how nice).

arent u glad ppl like me dont declare bankruptcy and leave u all with the bill... in higher credit card rates in this case. >>


----
Hey, how the heck can you say they made mistakes like Enron? Do you even know what you are talking about? What Enron did was commit fraud. Lashing out at Providian for being sneaky is one thing, but Enron's destruction of their employees' retirements is another thing entirely. Sorry, I don't mean to lash out at you, but Enron really pisses me off.

:|

 

[XFreebie]

they both made bad investments and tried to cover it up by making more investments; providian saw bad loans and still loaned out more, and the bad debt finally mounts till they cant cover it up anymore to the point where the government steps in and tells them they cant lend anymore money out, and so they have to raise their rates.

 

[Fatrix]

i own a providian cc with just about over $3k limit. if providian goes out of business, will i still owe them money??

 

[woowoowoo]

I was too harsh. I apologize for that, but you?re still off base with Enron. Enron took advantage of their new industry. They hired the auditors (conflict of interest) who should have busted them, allowing them to set up numerous offshore partnerships that covered those ?bad investments? (fraud), and greased their way through every level of politic to deregulate their industry to do it (premeditation). What Providian did was make loans to high risk people (playing with fire) and they got burned (stupid is as stupid does). What I am saying is one was transparent, the other was out and out fraud. The damage created by Providian is a lower stock price and higher rates. Enron intentionally deceived, and when the truth finally came out they destroyed their employees? nest eggs, while the executive officers walked away with millions if not billions.

Recap: I am sorry for being so curt. But Enron Exec?s are a bunch of crooks; Providian Exec?s are a bunch of jerks. That?s all I meant to say.

 

[woowoowoo]

<< i own a providian cc with just about over $3k limit. if providian goes out of business, will i still owe them money?? >>



I only wish that were the case. When a company, even one about to go under, has account receivables on their books they will mostly likely try to collect by selling the owed moneys to another credit organization (normally at a big discount). The new owner of your debt is usually the unfriendly kind who just sends you to collections if you don't pay. Ahhh, now I will stop posting to this because I sound like an ass.

Almost forgot, if your credit card company is really hurting to collect, offer to pay half the balance off if they will zero out the account. Most CCC's will accept, and they won't even report it on your credit record, but make sure that's part of the deal.

 

[Omagh]

If they file for bankruptcy you will still owe your debt. You debt is
an asset to the bank and all assets will be sold to someone else. They
then become the "holder in due course" and your debt to them is still
legitimate.

Try offering to pay off your full amount at a discounted rate. They
ofter will accept it. However DO NOT accept a verbal over the phone. Ask that you receive a letter offering you the terms to pay off the
loan and make sure that they state that as long as you adhere to all the terms of this debt that you obligations to them for this transaction will be met. They will usually report to the credit reporting agencies that you "paid in full for less than the full amount". You may be able
to negotiate this portion though. Also MAKE SURE that you get ALL terms and conditions in writing BEFORE sending them any payment.

It has worked for me before.

 

[Monotreme]

I just called and told them I wanted to cancel because I heard the rates were going up. The CSR offered to lower my rate from 23.xx to 16.xx if I would stay with them. I agreed, figuring I could still cancel later at the 16 percent rate.

A bolder person might be able to negotiate his rate down even further.

 

[DUKAT1]

My case was different. I did not receive any change of account notice with my statement Thursday. After reading the posts here, I anxiously awaited calling them this morning.

I was told that this change in the agreement is only being sent to those acct. holders who have made late payments twice, or who have had their payment checks bounce, or one of each, in the last 12 months. I do not know if this is true, please do not be angry with me for repeating what I was told.:frown:

Instead, the 3.9% rate I currently enjoy there, was extended an additional month. at which time my rate will increase to 8.24% (not + prime)

YMMV

 

[Monotreme]

DUKAT1,

That does sound like me. I tried to schedule an online payment over the weekend once and it wasn't credited till their next business day.

In other words, I made a late payment and propelled myself to Providian's ideal customer level.

 

[tazmania99]

Providian really sux! I remember when I applied online like 4 months ago, everything was approved and I should have got my card within 10 business days. However, they didn't send me the card until I called them up after a whole month. This delay made me worried of whether my card was stolen. At first the only reason I wanna keep the card is the card design is great, which is a transparent. With such high APR and possible annual fee charge, this card is useless for me unless I pay off my balance every month. But if I have to do that, why do I choose Providian? In fact, I've never use this card since I opened the account. I will close this account soon now.

 

[RobsTV]

Huh? Just got my bill yesterday and saw the notice.
Providian fine here, except for normal high interest rate.
Interest rate still staying at 23.99% on both my Visa and M/C.
I owe them more than 10k so perhaps that's why they like me?

The only rate increases are for:
1. Credit line increases. (optional)
2. Cash advance fees. (optional)
3. Late charges. (optional)
If you accept credit line increases, get cash advances, or pay late, you will pay more.

No increase in annual fee.
No increase in interest rate.
No mandatory fee increase.

And even with the above optional items that have fee changes, they give you
the option of saying no thanks, and keeping original fees. Of course no more
charges will be allowed if you use the above options, and don't agree to pay
extra.

Providian is one of those companies that goes out and signs you up 6 months
after you claim bankruptcy. They charge you more, but are one of the few that
will extend credit to bad risks. They are good to use until you get re-established.
Once you get other cards with lower rates, transfer amounts to new cards, and
leave the high interest Providian to the high risk groups.