Providian Financial Credit Card

A lot of consumers have been receiving calls from different telemarketers regarding credit card offerings.
One such credit card that used telemarketing as a tool to get customers is the Providian Financial Credit Card. Providian Financial Corporation used to be one of the leading issuers of credit cards before being sold to Washington Mutual and it was later demanded to pay its customers an amount amounting to hundreds and millions of dollars.

This is because complaints and lawsuits were filed by Providian Financial Credit Card holders due to discrepancies in billing and misleading actions. In fact, some consumers did not even remember signing for the credit card program, thanks to the unending mails and phone calls that they received from the company.

There were many problems concerning the Providian Financial Credit Card. First, they charged a very high annual fee, wherein consumers were told that there would be absolutely no such fee. The company defended that what they were charging was some sort credit protection, which could be opted out once the consumer sees it reflected on his billing statement.

Second, the interest rates of Providian Financial Credit Card were not clearly discussed to the customers. In a sample sales pitch from a telemarketer, instead of giving the figures of the rates which were asked by the customer, vague responses were given instead in the form of enticing talks. The customers will soon realize that they were being charged with higher than usual fees, making them poorer and more indebted for a small amount of credit.

Finally, the billing statements of Providian Financial Credit Card arrived too close to the deadline, which did not give much time to the customers to pay their bills on time. This in turn incurred late fees on the customers’ part and only heightened the complaints coming from them.

Providian Financial Credit Card has somehow abused the rights of its consumers with this series of actions. In the end, they were directed by the Superior Court of California, City and County of San Francisco, to engage in a settlement with its customers, whose credit scores have suffered because of the turn of events related to the credit card program.

As responsible consumers, you have to know and understand the terms and conditions that a credit card program is offering to prevent the likes of Providian Financial Credit Card from affecting your credit history negatively. A single mistake can largely affect your credit rating and credit score, so make sure that you are signing up for the right credit card. If you do not understand something, it is indeed wise to ask. If answers are not given directly, be cautious enough to prevent problems from occurring in the future.

What happened to Providian Financial Credit Card must serve as a lesson to both credit card companies and consumers alike. For credit card companies, they must follow the regulations imposed by the law. For the consumers, they must keep their guards up from such deceptive businesses that could be glossy on the surface but turns out to bring more harm than the promised benefits.


Source: Credit Cards For People With Bad Credit Rating

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