Credit Cards

[tbrooks]

i messed up. i applied online for the 1st premier bank cc, was approved. i called the 1800 number about an hour later. i was able to get in contact with a rep, asked if i could cancel before it was sent, even if i had to pay up front fees, she said it was cancelled and i would recieve an cancellation confirmation in the mail within in 7-10 days.

did i avoid disaster? will the card show up in the mail in the next few days? i was just looking for a simple cc to show some revolving credit. i dont mind paying the high cost upfront, using it once a month for gas and then paying it in full on time. i just would prefer to be able to pay online, using my paypal debit card, without any hiccups.

hopefully i got out of it. if not, i guess im screwed

[creditwherecreditisdue]

You shouldn't have to pay the fees.

You may or may not have the account post as a new TL.

You will be hit with a hard INQ.

[creditwherecreditisdue]

Be sure you call them back when you receive that letter and make sure you know what the status of those fees is. Don't get creamed later by something you assumed had been removed. Know it for a fact or deal with it now!

[plasticman]

Would not the CC need to be activated by the consumer once received, before a fee can be charged?

ETA: I was once issued an unsolicited Amex. platinum CC with a $450 AF and was told by Amex.CSR  the fee would only apply if I activated the card.

Message Edited by plasticman on 09-09-2009 05:31 PM

[creditwherecreditisdue]

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plasticman wrote:
Would not the CC need to be activated by the consumer once received, before a fee can be charged?

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That would be my thought, but I would never assume anything with slipperly eels like FP. Some have been caught unaware by fees they thought had not been imposed and had a nightmare on their hands. There isn't a provision in the Credit CARD Act of 2009 pertaining to "Fee Harvester" cards for nothing. Soon They will have to collect those fee's up front!

(n) Standards Applicable to Initial Issuance of Subprime or ‘Fee Harvester’ Cards-

(1) IN GENERAL- If the terms of a credit card account under an open end consumer credit plan require the payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) by the consumer in the first year during which the account is opened in an aggregate amount in excess of 25 percent of the total amount of credit authorized under the account when the account is opened, no payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) may be made from the credit made available under the terms of the account.

[plasticman]

So, CC laws are silent on this issue?

If so, someone deliberately omitted this in the CC laws.

[tbrooks]

I called them again an hour after i called the 1st time to cancel. the 2nd person i talked to noted that the account had been cancelled per my request and that i would recieve a letter within 7-10 business days. 

also when i checked the status of my online app, instead of saying approved, it said other information needed .

so it sounds legit. ill wait and see.

[plasticman]

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tbrooks wrote:

I called them again an hour after i called the 1st time to cancel. the 2nd person i talked to noted that the account had been cancelled per my request and that i would recieve a letter within 7-10 business days. 

also when i checked the status of my online app, instead of saying approved, it said other information needed .

so it sounds legit. ill wait and see.

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I wish you the best outcome. Have you considered a CU instead of a bank?

[creditwherecreditisdue]

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plasticman wrote:

So, CC laws are silent on this issue?

If so, someone deliberately omitted this in the CC laws.

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They are silent. Making them collect the fees separately will clean up most of the nonsense that goes on.