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Kia Franklin

First Premier Bank Settles Deceptive Marketing Lawsuit

At least 100 New Yorkers told the attorney general’s office that First Premier Bank deceptively marketed its credit cards to them by claiming to offer the card for no upfront fees but then tacking them on anyway. This only further harmed the credit scores of these already-vulnerable consumers, who took the cards to improve their poor credit ratings.

One man, according to the New York Times article, received two First Premier Bank credit cards with $250 credit limits, spent $52 before canceling the cards, and ended up $1,017 in debt after the upfront fees and late charges.

The bank has agreed to settle Attorney General Andrew Cuomo’s lawsuit to the tune of $4.5 million, plus $105,000 in penalties and costs. It did not admit liability and claimed that what it did was an industry standard, but interestingly, stopped this practice a few years ago... Perhaps the bank knew consumers were onto them, fed up, and taking it to the AG?

The settlement money will be used to repay customers for any credit card charges that the AG office determines to be unfair. The remainder will be kept by the state.

Read the full article in today's New York Times.

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Posted at 10:56 AM, Aug 16, 2007 in
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Comments

I since have paid this bill...but they got me for all kinds of charges...and I took them at their word and they are not the only credit card outfit that did, or does charge crazy fees and interest ....

Posted by: Irene Pollman | August 17, 2007 9:34 AM

As a credit consultant, I have seen the errors they have made. I am currently working with a client whom had a First Premier Credit Card, ran into the crazy fees, closed and paid off the account, and now it has reappeared on their credit with a rising balance!!! I am looking for a class action suite against them for pulling credit without permission.

Posted by: K Bailey | August 21, 2007 7:22 PM