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| Subtopic | Msgs | Last Updated | |
 | My Net First National Bank complaint to the OCC | 9 | 01/26 03:33pm |
| Creditcardfreedom.com continuing to HIGHLY recommend the Net 1st card | 1 | 01/25 05:54pm |
| cardratings.org - it took a while, but finally Curtis downgraded the Net 1st card | 3 | 01/25 05:31pm |
| Contact info for Net First (aka Net 1st) - Boca Raton, FL | 1 | 01/22 06:34pm |
     | Saturday, January 20, 2001 - 06:08 pm  Complaint about Net 1st Mastercard at http://www.1st-netcard.com/dollars/2162/19/125/index.html?sourceid= 1) Net 1st purposely advertises an INCORRECT APR and is violating Truth In Lending legislation. 2) Net 1st is taking unfair advantage of people with bad credit by offering an extremely absurd M/C program that leaves unsophisticated people with $589.95 out of their pocket and no available credit at all. 3) Net 1st wouldn't have a chance if there weren't so many web sites claiming to HELP consumers (fake .orgs and "consumer" sites) who rate and actually RECOMMEND this rotten deal. These vultures don't hesitate for a second to exploit their readers for that commission from Net 1st. See http://www.cardratings.org/cardrepfrC.html and http://www.creditcardfreedom.com/unique_products/creditcards.asp and http://www.creditcardfreedom.com/reviews/cards/details/poor_credit.asp?CreditCard=Net+1st+MasterCard The ratings are all quoted below in their entirety I posted my concerns and requested they change their recommendations at http://boardserver.mycomputer.com/read.html?collapse=0&uid=539413&u=Fairterms&id=2240&loc=0&thread=2240&f=1&u=Fairterms which serves as message board for both creditcardfreedom.com AND cardratings.org. Net 1st designed this program to create extreme profits through APRs in the 1,000% and HIGHER range due to excessive fees. First new customers have to pay a $89.95 Application/Processing fee AND send in $500. Then they receive a M/C with NO available credit! From the Net 1st terms and conditions on their web site at http://www.1st-netcard.com/dollars/2162/19/125/terms.html: "Net 1st National Bank KFS MasterCard® Program. A refundable $500 Reservation Fee is payable to KFS (the "Reservation Fee") in connection with the opening of your account. The Reservation Fee will be charged to your credit card account and will fully utilize your initial $500 credit limit. Before you may use your card or account to make purchases or to obtain cash advances, you must make payments on your account. The difference between the total unpaid balance and your credit limit will be the amount of credit available to you." Those people who have been suckered into applying are out $589.95. In order to actually be able to use the card, customers have to send in MORE CASH! Obviously MANY 1st Net customers don't understand this concept, it took me quite a while too. It is so incredibly bizarre, it's difficult to believe even while reading it on their Terms and Conditions. Of course many of the 1st Net customers are extremely short on cash, and they expected to be able to use that credit line. By the time they find out, it's too late. Subsequently they will suffer very severe cash flow problems. $600 is a lot of money for many people in America today, especially the ones targeted by 1st Net and those despicable 1st Net affiliates. And the scam doesn't end there, it gets WORSE: "ANNUAL FEE*: $96 PER YEAR" and *The Annual Fee is payable monthly, ($8 per month)." Obviously this MANDATORY monthly payment is a great profit opportunity due to the many fees: "Credit Card Fees: Transaction Fee for Cash Advances: the greater of $2 or 3% of the Cash Advance; Late Payment Fee: $25; Over Limit Fee: $25; Check Returned Fee: $20; Reinstatement Fee: $20." For example, somebody NEVER uses the card and the $8 monthly payment is lost or delayed by the postal service: We have the $25 late fee AND the $25 Over Limit Fee AND possibly a $20 reinstatement fee. I think this alone should be reason enough to shut that outfit down. However, there's MORE! Net 1st advertises "0 % A.P.R. for the life of the card." This is clearly a misrepresentation due to the fees required. As a matter of fact, again from their Terms page: "Application Processing Fee: You agree to pay a one-time processing fee as disclosed below. The processing fee is a FINANCE CHARGE for Truth in Lending purposes. Net 1st will generate a one-time electronic debit within the next business day from your checking account based on the information you have already provided us." This statement indicates that Net 1st very well knows that they are violating Truth in Lending laws by advertising a 0% A.P.R. AND, what about the annual fee of $96, payable at $8 per month? And one more thing: "Printing date 1/20/2001 . The above credit terms were accurate as of the printing date, but are subject to change after that date. To check on any changes since the printing date, you should call Net 1st National Bank at 1-888-900-2262." I certainly hope THAT's illegal and that it is the bank's responsibility to inform the card holder of any changes. PLEASE shut Net 1st down immediately. I will post this complaint at my site at bayhouse.com/discus as well as your response and the results. Sincerely, Christine Baker www.bayhouse.com/discus http://www.cardratings.org/cardrepfrC.html: "Net1st Mastercard review of card ratings: Updated 01/01! Site sponsor. Note! The Net1st card is now being issued again. This card caters to consumers seeking to establish credit or rebuild their credit. This card boasts a 0% interest rate (more info. below) and "no credit checks" (charge offs are even overlooked)! It also boasts guaranteed approval for U.S. citizens residing in the U.S. that have a valid checking account. Another attractive feature is that the card reports to all three major credit bureaus! The card operates much like a secured card, though there are some subtle differences. A refundable $500 Reservation Fee is required (the "Reservation Fee") in connection with the opening of your account. The Reservation Fee will be charged to your credit card account and will fully utilize your initial $500 credit limit. Before you may use your card or account to make purchases or to obtain cash advances, you must make payments on your account. The difference between the total unpaid balance and your credit limit will be the amount of credit available to you. The 0% interest rate can be attributed to the reservation fee." http://www.creditcardfreedom.com/unique_products/creditcards.asp Those with poor or limited credit may find obtaining a credit card difficult, however, with the Net 1st MasterCard cardholders are given the opportunity to establish credit at a relatively low cost. Unlike secured credit cards, the Net 1st MasterCard reports to all three credit bureaus as an unsecured card, there is no credit check for those who apply, a 100% approval rating (for those who complete an accurate application), and there is no interest rate applied on the account. Cardholders who need to build or rebuild credit will find the Net 1st MasterCard to be very advantageous. and http://www.creditcardfreedom.com/reviews/cards/details/poor_credit.asp?CreditCard=Net+1st+MasterCard Review The Net 1st MasterCard issued by the Net 1st National Bank is designed for those who need to build, or re-establish credit. Though at first glance this card may seem to appear as simply another common secured card, there are several important features about this card which make it quite different. First, Net 1st National Bank reports the cardholder's payment history to all three credit bureaus as an unsecured credit card. Secondly, there is no credit check for those who apply and those who complete an accurate application will be accepted (100% approval rating). And thirdly, there is no interest rate applied on the account. So how does the card work to help build a positive credit history for the cardholder? Here's how. Once the cardholder applies online, he or she will receive a personal Net 1st MasterCard within a few weeks. Then in order to use the card, the cardholder must make payments against his or her limit, in this case up to $500, which is fully refundable (note: the 'Terms and Conditions' statement posted online for this product states that the cardholder must send an initial deposit of $500, this is not the case, the cardholder can send any deposit amount desired). So for example, if the cardholder sends a payment for the amount of $100, then the cardholder has cleared $100 in credit that can be used for future purchases. Since this card is solely designed to help establish credit, there are no additional benefits or services offered, except to help build the cardholder's credit history. The Net 1st MasterCard does however come with an annual fee of $96 (payable monthly on the account at $8 per month) and an application fee of $89.95 ($109.95 to include a joint cardholder). Though this card does have a high annual fee and high application fee as compared to other cards designed to help establish credit, the main attractive feature about this card is the fact that Net 1st National Bank reports the cardholder's payment history to all three credit bureaus as an unsecured credit card. This means that when the individual's credit report is reviewed by other creditors, it reduces the chances that the cardholder's credit history will be questioned as opposed to having a secured credit card account, in which may otherwise create a red flag for creditors. So those who are unable to obtain a standard unsecured credit card will definitely want to consider the Net 1st MasterCard as an alternative choice to help build a positive credit history. NOTE: This card is listed in our "Cards for Poor Credit" category, since it is designed for those with poor credit or limited credit and is reported as an unsecured card, and in our "Secured Cards" category, since it does require the cardholder to secure the account by paying in advance for future payments. Date Reviewed: 12/20/00 Most Attractve Benefit: No interest rate, no credit check, 100% of applicants approved, reports as a non-secured card to credit bureaus. Least Attractive Benefit: High annual fee, application fee.
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| | Saturday, January 20, 2001 - 06:43 pm Well this was interesting. I *think* it took 11 submissions, here is my final: Well, I sure hope SOMEBODY at the FTC has the ability to comprehend more than 30 lines. This will be a multi part submission. Part 11: You might find it easier to just read my complaint at the BayHouse web site at http://www.bayhouse.com/discus/messages/649/1080.html?980050141 I also want to let you know that this is NOT a comment as your confirmation indicates. This is a COMPLAINT, I expect you to act on it and I will periodically update the progress of your investigation. Also, I hereby request that you please send me a copy of my complaint. Doesn't it make common sense to ALWAYS provide a copy? Wouldn't that be something the FTC should recommend to consumers? How about being a good example? Thank you, Christine Baker
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| | Saturday, January 20, 2001 - 08:10 pm Wow. About 24 hours ago I was just looking to add some more "merchants" to order-credit.shtml and next thing I know, I spent AT LEAST 12 hours on this Net 1st scam. Reading, writing, researching, posting ... It took me forever to find the READER reviews at creditcardfreedom.com. I didn't even make it through all of them, but there sure is a lot of food for thought. There are the reviews by people who OBVIOUSLY are clueless, who would never be able to understand any terms and conditions. SO incredibly clueless, they actually post a card REVIEW asking for the Net 1st phone number, never used the card, and RECOMMEND the card! I also read a few quite literate reviews, most of them positive. I don't think a literate and apparently educated person would recommend this card and give it 5 stars for every category. So, that leaves me to conclude that they weren't "real" reviews, but only posted to increase the rating to a 3 out of 5 stars. And I wonder how much Net 1st pays. As you can see at order-credit.shtml, they all pay at least $20+++ per application or opened account. I wonder what makes these people do what they do, for just a few bucks, without any regard for how much harm they cause. Because there might be some new people reading this topic, I want to emphasize what regulars already know: PLEASE post if you find any problems with any of the BayHouse advertisers. Qspace is OFF the BayHouse site. It seemed like my own postings about the problems with the Qspace credit reports caused everyone else to chime in. And speaking of Qspace, they ALSO should be reported to the FTC. I guess I'll do that for my Epinions review of Qspace. Anyway, I DON'T know everything! It's up to YOU to report any problems. I really don't expect anything from the FTC, so I'd greatly appreciate any suggestions on FAX #s for any Florida legislators, banking regulators or federal banking regulators, whoever could possibly care. Net 1st is located in Florida. Or, even better, fax or E-mail your own complaint. Feel free to distribute MY complaint. Please remember that if you CHANGE any of the text, you also have to take MY name off.
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| | Monday, January 22, 2001 - 05:58 pm I never got any acknowledgment from the FTC. I searched their site for a fax number and found none. So I submitted another complaint, requesting their fax number. While I was contemplating what to do next, I kept hitting the back button and resubmitting my request for the fax number. Maybe that'll get their attention. For about 20 minutes I looked for the Florida Attorney General's page, hoping for a way to file a complaint there. I could NOT find anything but pages on travel agency investigations and other pages with no links. Got tired of that and decided to file a complaint with the FDIC. At least I know their web site exists. I got to http://www2.fdic.gov/idasp/main.asp where I searched for 1st Net. I found nothing, and after going back to their T & C, finally realized that it's Net 1st. I've had that problem all along, never knowing which it is: 1st Net or Net 1st. Clever choice of name. Strange enough, I found nothing for Net 1st either. So I searched for all banks in Florida: No Net 1st. Next, Net 1st in the US: nothing Next, Florida, Clearwater (their cancellation address): 26629 First National Bank of Florida 27152 Intervest Bank Hmmm, nothing close. As I again read the T & C, I realized why I can't remember their name: http://www.1st-netcard.com/dollars/2162/19/125/terms.html So the URL is reversed. What a great trick. 50% of all complaints are never going to be linked to 1st Net. Oops, Net 1st. Eventually I looked through the 314 Florida banks and found: Net First National Bank - I'll post their contact info separately
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| | Wednesday, January 24, 2001 - 07:31 pm FTC complaint Ref No. 1235637 Surprisingly I got a "real" response from the FTC. I almost filed it since it looked like their normal autoresponse when I noticed the 2 text files attached. One advised that the OCC is the primary regulator of most banks, the other was an interesting document on advertising called bus-28.txt. It's supposed to be on the FTC site, but I haven't found it yet. This is the first time in many years that one of my FTC complaints got a reference number. Here is my response to the FTC: Thank you for your reply. From your attachment bus-28.txt: "The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that's not true. For example, a lease advertisement for an automobile that promotes "$0 Down" may be misleading if significant and undisclosed charges are due at lease signing." I hope that you find it misleading to advertise a 0% APR while charging numerous outrageous fees and NOT providing a credit line at all. From your attachment: "Advertising agencies or web site designers are responsible for reviewing the information used to substantiate ad claims. They may not simply rely on an advertiser's assurance that the claims are substantiated. In determining whether an ad agency should be held liable, the FTC looks at the extent of the agency's participation in the preparation of the challenged ad, and whether the agency knew or should have known that the ad included false or deceptive claims." My attempts to get the owners of some of the Net 1st affiliate sites to voluntary remove the Net 1st banners failed. Curtis Arnold, founder of cardratings.org, claims to be a credit card expert and he KNOWINGLY continues to advertise and recommend the Net 1st MasterCard. Creditcardfreedom.com also still highly recommends the card. I can't even warn their readers because my "negative" postings are now being deleted. I highly recommend you have a look at their public web board, a marketing partnership of four credit sites. You can read our public discussions right there, unless of course they delete those too. It's up to you to enforce the law. The people who get ripped off OBVIOUSLY don't have the money to sue. And of course the Net 1st Terms & Conditions state that the venue is in South Florida, the victims can't even go their local Small Claims Court. I'll greatly appreciate your prompt investigation. Sincerely, Christine Baker www.bayhouse.com/discus/ c: posted at BayHouse
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