I applied for a credit card through information given to me on
campus. It was through Associates National Bank in Delaware.
The interest rate was high, but I needed to establish credit
somewhere. I had a low balance of $500. When I made a late
payment they charged me $29.oo. for a late fee. This late fee made me go over my limit. Because I was over my limit they charged me an over the limit fee of $29.00. So now I am $58.00 deeper in debt because I didn't pay a payment on time. The minimum balance due on my next bill was paid and then they charged me again for being over the limit. To make a long story short I asked for a settlement agreement to payoff this account without paying the extra fees.
They wouldn't remove all of the fees, but I agreed just to get them behind me and cancel the card. I found out I could have gotten a card from my credit union for 9.9% interest instead of their 17.49%.
I made the payment and then I got a statement in the mail saying I was due a refund of $116.00 because some payments had crossed in the mail.
Two months later and I still haven't received the
refund. My mother called the company for me today while I was at work and they said they hold the refunds for 90 days unless the card holder calls and personally requests the money to be
refunded. She told them I was at work and couldn't call because of the hours they were open (their customer service number is not a toll free number either - and expect to stay on hold quite a while)so not to expect the check soon unless a call was made to request it and they wouldn't let her make the request. They charge a huge amount of interest, charge large fees, and then hold YOUR money when there is an over-payment. Does this make sense for a financial institution to do business this way? Especially when you are a college student and they know you have money struggles more than an established adult!