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Providian-10 days to aknowledge "electronic" payme


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I am going to sue them (in small claims court in Missouri) for not "crediting" my credit card balance - after an electronic (from my checking account) payment. Worked all the way up to the executive offices only to be told, that, yes, they aknowldeged received my payment (10 days earlier) - it is "their policy" to credit accounts 10 days after (electronic payment)!

MY question is, under what section of the FCRA should I sue?

Thanks

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I could've sworn they paid out over $400,000,000 in class action suits because of practices like this. I don't believe there is anything in the FCRA for posting of payments. This sounds like a company policy that apparently their attorneys believe is legit. I think it might be time for another class action, since this is a ploy to collect more fees from their customers.

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<blockquote>Originally posted by kpallante

I am going to sue them (in small claims court in Missouri) for not "crediting" my credit card balance - after an electronic (from my checking account) payment. Worked all the way up to the executive offices only to be told, that, yes, they aknowldeged received my payment (10 days earlier) - it is "their policy" to credit accounts 10 days after (electronic payment)!

MY question is, under what section of the FCRA should I sue?

Thanks

</blockquote>

I'm not sure there is anything in the FCRA that covers your situation. Did they report you 30 days late on your credit report? If so, I would call back that executive and demand that your CR be reported correctly. I would also ask for the written policy of posting cash recieved via electronic payment. If done with a 'Phone Check', this could cause the delay. I don't think there should be a delay with a debit card.

Good Luck

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Thank you both for your responses. Where might I find the, "Fair Credit Billing Act" ? Also, for the record, this was a direct, "electronic transfer of funds" (via their web site)- from my checking account. Also, for the record, the AG office (in Missouri)& the Comptroller of the Currency both told me that this does not fall under their aegis, and they could not help me.

Thanks

[Edit by kpallante on Tuesday, April 29, 2003 @ 12:14 PM]

[Edit by kpallante on Tuesday, April 29, 2003 @ 12:15 PM]

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<blockquote>Originally posted by LadynRed

I seem to remember that the application of payments must be done within a mandated time frame and I *think* I read that in the Fair Credit Billing Act. Have to go look that up !

</blockquote>

Yup

http://www.ftc.gov/bcp/conline/pubs/credit/fcb.htm

Other billing rights

Businesses that offer "open end" credit also must:

give you a written notice when you open a new account - and at certain other times - that describes your right to dispute billing errors;

provide a statement for each billing period in which you owe - or they owe you - more than one dollar;

send your bill at least 14 days before the payment is due - if you have a period within which to pay the bill without incurring additional charges;

credit all payments to your account on the date they're received, unless no extra charges would result if they failed to do so. Creditors are permitted to set some reasonable rules for making payments, say setting a reasonable deadline for payment to be received to be credited on the same date; and

promptly credit or refund overpayments and other amounts owed to your account. This applies to instances where your account is owed more than one dollar. Your account must be credited promptly with the amount owed. If you prefer a refund, it must be sent within seven business days after the creditor receives your written request. The creditor must also make a good faith effort to refund a credit balance that has remained on your account for more than six months.

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Thank you, Swede & everyone else. Any other info that is relevent would be appreciated. This, apparently, is a relatively esoteric (credit dispute) problem. I will pursue it as it is not only usurious but it is also just, plain, wrong. Providian's "Executive" that called me said, "they would not give me any money to make this go away...&...I should go ahead and file a suit if that's the way I feel!"

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Sounds like they adopted cap 1's buisness model. Not to pile it on (cause what you described had happened to me too) but these days a late with one cc could cause others to raise APR's.

It's well known to anyone with a bank account that they always selectivly debit/credit ones account unfavorably. Google "bounce protection."

BTW I posted a link to an article in " Credit Article of the Week" which explains how cc co's get 1/3 of their profit from fees.

Hope you get it sorted.

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Thanks Swede, I KNEW I'd read somewhere that creditors MUST post your payment the day it is RECEIVED ! Unfortunately, this isn't stopping these cc companies from holding payments until they ARE late so they can charge the fees. Unless we can all send our payments in CRRR to get proof of receipt, we don't have much help in fighting them. FUSA is one of the many that have been sued over this payment hold practice. There used to be a board, FUSAscams, and people told of sending payments CRRR and FedEx to prove the holding of payments .. FUSA would RETURN those kinds of mailed payments and then, of course, tack on late fees and other charges !

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To everyone (I am, relatively, new to this board) I thank you for your response(s) and value the insight. I have to clarify (what I am inferring) is a misunderstanding of my (Providian)problem. They did not charge me any extra fees; they did not say that they did not receive timely payment; - indeed, the problem is that they aknowledge having received my payment (electronically-from my checking account-20 days prior to its due date, as I have done every month for a year).

The problem is that they would not release / credit my account so that I could use the card. 8 Days after they had my money they still had placed a "hold" (on my available credit). I discovered this when I attempted a $100, online, purchase and was denied.

When I called Providian and asked why there was a "hold" on my available credit, they said that is their "policy". This assinine excuse would hold water - if it were a (paper) check - perhaps. Not only did they say they would not release the "hold" that day (meaning I couldn't use the card)- but, indeed, the "hold" would be released on Tuesday, April 29, 2003. This was a full ten days after Providian sucked the money out of my account.

Compounding the frustration is the fact that they would not call my bank to verify that, indeed, the funds were in their hand; for each level I climbed (up the customer service ladder)the more ignorant, obstinate and unhelpful they became.

They picked the wrong person this time, though. I am going to hammer them.

Finally, can anyone give me a link or info. on the class-action suit(s) Providian has lost recently? Also, how about a link to (Credit) atty's. in Kansas City, MO. area?

KMP

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