Providian is still a Scam
Written: Feb 21 '01 (Updated Feb 21 '01)
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Pros: Offers credit to those who can't get it
Cons: Expensive, Poor customer service, Outrageous rates
The Bottom Line: Providian is only a choice for those who like pain.
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| vein's Full Review: Visa Classic (Providian Bank) |
Note: This review originally appeared under another Providian category when the original site was in existence. Here it is, in the proper category and fully Y2001 compliant.
Yes, I was one of those suckers who received a credit card offer in the mail from Providian and replied. Why would I be begging for such pain and torture, one might ask? No, I didn't have bad credit - in fact, quite the opposite. All bills had been paid on time, my two existing cards had high limits with a low APR and no outstanding balance. Yes, my credit was excellent. I stupidly enough just felt it would be handy to have another Visa card in case of that roadside emergency. (Read: Must. Shop. Now.)
The Providian Classic card I was "pre-approved" for had a lower APR than was average at the time (12.1%) with a 25 day grace period on all purchases, not to mention no annual fees.
At the time when I filled out the little card and dropped it in the mailbox, I had little idea that I was selling my soul to the devil.
About two months after my account was opened and my card activated, things started to go downhill. And believe me, there was no stopping from that little downward slope.
The first "Bad Thing" (tm) happened when my card began being declined at certain merchants. I had little to no balance on the card, plenty of credit left, and yet this Visa, that should be accepted everywhere, was making me look like I couldn't manage my credit. Quite a few times I was mortified when the clerk had doubts of my check being accepted after the credit card verification had failed.
The second "Bad Thing" (tm) occurred when I opened up a little envelope Providian had sent. Starting from that date, there would be an annual fee of $49. My first and only card with an annual fee. I was not a happy camper, to say the least. I called up Providian "customer service" who stated that it was a new company policy and there was no way they could get rid of the fee, even if I had stellar credit.
Around this time, bills began arriving late. Very late. All of my other bills were arriving on time as expected, with nothing missing from my mailbox. Providian statements regularly came within 10 days of being due. Kind of hard to make an on time payment when they claim to allow them at least 5 business days to process payment, don't you think? At the late fee charge of $29 a pop, I guess they hoped people wouldn't send payments in via Priority mail.
After being hit with a late fee (sending the payment via Priority mail 9 days before the due date, the day it was received) I was mad. I called up Providian "customer service" yet again to discuss with them the late charge. The only "proof" they'd accept would be to send the payment via registered mail. I did so with my next payment. Big surprise! I was hit with another $29 late charge. Not only had I sent the priority mail package registered, but it also had delivery confirmation. According to the USPS website, the envelope was delivered to Providian 8 days before payment was due. This time, they weren't to argumentative about removing that late charge.
They did not have a website when this mess was occurring that allowed payments to be made, (if even the current website does) so with a $15 charge to make a payment by phone, they apparently hoped to rack up all the dough they could.
The next letter I received from Providian stated (in that excited talking to a small puppy dog kind of way) that I could be charged, by Providian, $150 to raise my credit limit $200. I feel sorry for those who actually accepted this offer. I'm not going to pay anyone to increase my limit, especially when the credit increase is only $50 more than what I must pay.
Shortly thereafter, I received a statement with a new "credit protection" fee listed. I had never signed anything requesting credit protection, nor would I be stupid enough to pay $9 a month while carrying a balance of exactly $0. Another call to "customer service" who stated that it was always on my bill (apparently I was too stupid to notice?) and that with my "credit level" it was required. Telling the customer service rep I was cancelling my account, as of immediately got a supervisor on the phone who took the charge off.
Hi, what possessed me to continue dealing with a company that lies and tries to tell me something was charged when the past statements are sitting in front of my face?
I must like pain.
Since I opened my credit card through Providian Classic in April of 1999, the APR has been steadily increasing upwards, due to "company policy" change. The card is now at 23.9%, which is just about the highest I've ever seen. (Especially considering every other card I own is around 12.9%) They must not be getting enough money from fake late fees and forced credit protection fees.
At any rate, my card expired in December. Because the card was not in use (emergency use only, in my safe) I didn't notice the fact until late January. I made a call to "customer service" yet again, asking where my card was and informing them I would not be paying the annual fee until I received and activated my new one. They claimed one had been sent and issued another one, to arrive within 7-10 days. Guess what? Never arrived. Another call to customer service. There apparently was no record of my asking for a new card to be sent.
I'm still waiting for a new card, two months after the old one expired.
Yep, just about time to stop dealing with the pain and torture and cancel my account. Hopefully they won't make it look like they closed the account on my credit report, as I've heard.
If you have absolutely no credit, go with another company that is geared towards those with little credit, such as Capital One. If you have great credit, stay away from Providian like the plague, as you will regret ever hearing the word "Providian".
Recommended:
No
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Epinions.com ID:
vein
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 - Top 1000 |
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Member: Courtney
Location: Detroit, MI
Reviews written: 88
Trusted by: 77 members
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