First Premier Bank
Encyclopedia
First Premier Bank, headquartered in Sioux Falls
, South Dakota
, is the 10th largest issuer of Visa and MasterCard
brand credit card
s in the United States
. The bank is known for specializing in a wide range of subprime credit cards that are designed to individuals with "less than perfect" credit.
In 2007, the bank settled a case with the New York Attorney General who claimed the bank used deceptive practices to market its credit cards. The bank paid four and a half million dollars as part of the deal.
In October 2010, the bank was cited for providing the nation's worst credit cards by the Consumers Union
. The group reported the bank charged as much as 59% interest on credit cards limited to $300. These cards are marketed under the names Centennial and Aventium as well as First Premier.
As of December 2010, Premier Bank is reportedly offering a credit card with a 79.9% interest rate, and a $300 limit. This
was cited by Senator Bernie Sanders
as an example of what he called "extortion and loan sharking".
As of August 2011, Premier Bank is offering a credit card with a 49.9% interest rate and a $300 limit. Additionally, it requires a security deposit of $95, and a $75 annual fee the first year. After the first year, the annual fee becomes $45 and a $6.50 monthly servicing fee is added (a total of $125 in fees annually). Cash advances are charged a minimum fee of $6 and limited to 10% of the total credit limit for at least the first 90 days. Any credit limit increases are charged a limit increase fee of 25% the amount of the increase, and increases may happen automatically after the first 13 months, though the customer may request the automatic increase be reversed within 30 days and the fee will be refunded. The contract also allows Premier Bank or any third party it chooses to contact customers via cell phone or text message even if the number was obtained without the consumer's consent via a third party.
Sioux Falls, South Dakota
Sioux Falls is the largest city in the U.S. state of South Dakota. Sioux Falls is the county seat of Minnehaha County, and also extends into Lincoln County to the south...
, South Dakota
South Dakota
South Dakota is a state located in the Midwestern region of the United States. It is named after the Lakota and Dakota Sioux American Indian tribes. Once a part of Dakota Territory, South Dakota became a state on November 2, 1889. The state has an area of and an estimated population of just over...
, is the 10th largest issuer of Visa and MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
brand credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The bank is known for specializing in a wide range of subprime credit cards that are designed to individuals with "less than perfect" credit.
In 2007, the bank settled a case with the New York Attorney General who claimed the bank used deceptive practices to market its credit cards. The bank paid four and a half million dollars as part of the deal.
In October 2010, the bank was cited for providing the nation's worst credit cards by the Consumers Union
Consumers Union
Consumers Union is a non-profit organization best known as the publisher of Consumer Reports, based in the United States. Its mission is to "test products, inform the public, and protect consumers."...
. The group reported the bank charged as much as 59% interest on credit cards limited to $300. These cards are marketed under the names Centennial and Aventium as well as First Premier.
As of December 2010, Premier Bank is reportedly offering a credit card with a 79.9% interest rate, and a $300 limit. This
was cited by Senator Bernie Sanders
Bernie Sanders
Bernard "Bernie" Sanders is the junior United States Senator from Vermont. He previously represented Vermont's at-large district in the United States House of Representatives...
as an example of what he called "extortion and loan sharking".
As of August 2011, Premier Bank is offering a credit card with a 49.9% interest rate and a $300 limit. Additionally, it requires a security deposit of $95, and a $75 annual fee the first year. After the first year, the annual fee becomes $45 and a $6.50 monthly servicing fee is added (a total of $125 in fees annually). Cash advances are charged a minimum fee of $6 and limited to 10% of the total credit limit for at least the first 90 days. Any credit limit increases are charged a limit increase fee of 25% the amount of the increase, and increases may happen automatically after the first 13 months, though the customer may request the automatic increase be reversed within 30 days and the fee will be refunded. The contract also allows Premier Bank or any third party it chooses to contact customers via cell phone or text message even if the number was obtained without the consumer's consent via a third party.