Late last week, a visitor to Smart Balance Transfers posted a credit card complaint that topped every single credit card complaint this website has ever received. As you’ll see below, this customer made a simple mistake that her credit card issuer used to charge her $500 in fees, raise her interest rate into the twenties, and earned Compass Bank a front row seat on the bus of shame.
First, let me share the customer’s original complaint. Its a doozy, and I’ve got the documents to prove it:
“I had an account with Compass Bank and had used them before for a balance transfer that I paid off. I got an offer from them for 6.99% fixed for life on a balance transfer, with a 4% fee. I mistakenly used another check they had sent which had expired when I did the transfer, and I got my statement to find a $380 fee for using their check, 21.99% interest rate, and of course all this had put me over the limit on the card, so they added a $39 overlimit fee. I called them immediately and discovered my error, and with my excellent credit and good history with them, asked them about backing out some of the over $500 in fees they had charged me. Meanwhile they offered me a six-month at 6.99% rate, and charged me twice for a “rate reduction fee” of $75! In the interim I made an online payment of $555.66 to pay all the fees while I was waiting to see if they would work with me on this. The supervisor was never available, and no one could ever help me…. Watch out for Compass Bank.”
Now, after receiving this complaint, I tried to contact the bank. I was put on hold, then given the number for a person who did not return the call. Thus, I only have the consumer’s side of the story to share here. However, she’s got a pretty compelling argument.
Now, if you looked at the image, you’ll notice a number of very questionable practices. First off, she was charged for a cash advance, charged a cash advance interest rate, and yet, if you look at her statement, she only has a $1000 cash advance limit. Yes, Angela made a mistake by sending in the wrong check. But if you can convince me that she could have gone to the ATM and pulled out $9,000 in cash on this card, you’re a magician. At worst, this check should have been treated as void and perhaps a penalty should have been assessed. End of story.
Not quite.
Now take a look at this image:
Angela was charged $75 not once, but twice to reduce an APR that should never have been increased in the first place, and then charged an over limit fee, because all of the bogus penalties applied to her account put her over her credit limit.
I cannot stress enough how absurdly brutal this bank was to a loyal customer. And, in the same vein, I cannot stress how important it is to be careful in all of your dealings with any credit card company. Banks are hungry for fees, and they will take them anyway they can.
While this is by far the most disgustingly unfair practice I have ever seen, much lesser, but equally unfair practices are commonplace these days.
Hopefully, this incident will help others avoid similar mistakes. And perhaps Compass Bank will find a supervisor who will actually take Angela’s call (or return mine) and make good on this situation.
But based on Angela’s story, all I have to say is shame on you, Compass Bank. And congratulations. You’re the champion of unfair credit card practices.
April 28th, 2009 at 5:55 pm
After putting together this story, I emailed Angela suggesting she contact a local news station. She sent the following reply,”Thanks, Jeff – the article is great. I like your idea about the local news; I live in a small town and they might just show an interest.”
Lets all hope this approach will prove sucessful.
April 30th, 2009 at 8:56 am
I got yet another update from Angela, and Compass Bank continues to shock me with the extent of their abusiveness. Here’s what Angela shared with me today:
“Jeff, wanted to update you and thank you again for your help. I did send an email to my local news station so we will see if anything comes of that. Meanwhile, I opened a new account with CitiBank to offset closing this one with Compass.
After not returning any of my calls, I got a call from Compass this morning, a rep and not a supervisor, who had my letter and cut up card in her hand and wanted to argue with me about what they had done. After trying to explain to her again the reason for closing my account, she lied and said my letter wasn’t clear (the first sentence of the letter was, “Enclosed please find your credit card. I wish to close my account with you effective immediately”). After listening to her nonsense for a while and not being able to talk for her talking, I told her to close the account and did I need to be any clearer. I ended up having to hang up on her. Imagine their collection practices if this is how they treat a good customer! Amazing arrogance!
I filed complaints with the FTC and my state attorney general along with Alabama’s where they are located. I additionally went to the Better Business Bureau and filed a complaint. So at the very least, I will cause them some aggravation for the money they got from me!
Thanks again for all your help. I am so glad I found your website and will continue to monitor your information and articles there.
”
At this point, let’s all hope one of the places Angela contacted can help. As you can see, there are a number of agencies that can be contacted if you find yourself in a similar situation. And, as I told Angela, keep fighting. Even if you can’t get your money back, the scrutiny you bring to an organization like this may help prevent them from doing the same to others.