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     | Wednesday, January 24, 2001 - 07:58 pm  To: customer.Assistance@occ.treas.gov -- OCC I have numerous complaints about the MasterCard offer by 1st Net, apparently known to you as Net First National Bank 5295 Town Center Road Boca Raton, FL 33486 FDIC Certificate # 26652 Bank Charter Class: N Primary Federal Regulator: OCC Primary Internet Web Address: http://www.netfnb.com/ Internet affiliate banners point to : http://www.1st-netcard.com/dollars/2162/19/125/ 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 order Net 1st to shut this exploitive program down immediately and order refunds of deposits, fines and penalties to the card holders. Please feel free to e-mail if you have any questions or post directly at the BayHouse Forum. Sincerely, Christine Baker c: published at 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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| | Thursday, January 25, 2001 - 11:50 am The OCC response: Subject: RE: Formal Complaint against Net First National Bank Date: Thu, 25 Jan 2001 10:15:56 -0500 X-Mailer: Internet Mail Service (5.5.2650.21) The Office of the Comptroller of the Currency (OCC), Customer Assistance Group (CAG) is responding to your recent Internet inquiry. This office requires all complaints filed with the office contain the original signature of the consumer. The Right to Financial Privacy Act (RFPA) governs the disclosure of financial records of individual bank customers to agencies of the federal government. In general, a federal agency can obtain a customer=s financial records from a financial institution only when the customer has authorized the disclosure or the disclosure is in response to a judicial or administrative subpoena, search warrant or formal written request by a federal agency. In enacting this statute, Congress intended to protect customers of financial institutions, including national banks, from unwarranted intrusion into their financial records by government agencies. Your complaint letter should be sent by U.S. Mail or fax along with any attachments. The information required is 1) your complete name and mailing address; 2) full name and location (city, state) of bank; 3) account number; 4) a detailed explanation of the complaint and what you want resolved by the bank; and 5) original signature of the accountholder. Please include your assigned case number, #230089, on any written correspondence. Any further correspondence should be sent by only U.S. Mail or fax to: Comptroller of the Currency Customer Assistance Group 1301 McKinney Street, Suite 3710 Houston, Texas 77010 Our fax number is (713) 336-4301. If you have questions, please contact this office directly at 1-800-613-6743 and refer to Case #230089 as we do not yet have your complete, current mailing address. Sincerely, John Dungan Customer Assistance Specialist
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| | Thursday, January 25, 2001 - 12:00 pm Dear Mr. Dungan: You wrote: "The information required is 1) your complete name and mailing address; 2) full name and location (city, state) of bank; 3) account number; 4) a detailed explanation of the complaint and what you want resolved by the bank; and 5) original signature of the accountholder." Are you telling me that I have to personally waste $589.95 to get the OCC to investigate 1) exploitive and predatory lending practices and 2) violations of the Truth in Lending Act? If you refuse to investigate, maybe you could let me know of any agency who WOULD investigate predatory credit card lending practices and Truth in Lending violations. According to the FTC, you ARE the primary regulator of Net First National Bank, FL. Sincerely, Christine Baker c: posted at http://www.bayhouse.com/discus/messages/649/1141.html?980460062#POST6594
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| | Thursday, January 25, 2001 - 04:30 pm Subject: RE: case number #230089 - Formal Complaint against Net First Nat ional Bank case number #230089 This is in response to your additional Internet inquiry to the Office of the Comptroller of the Currency (OCC), Customer Assistance Group (CAG). As stated in our earlier reply, this office requires all complaints filed with the office contain the original signature of the consumer. The Right to Financial Privacy Act (RFPA) governs the disclosure of financial records of individual bank customers to agencies of the federal government. In general, a federal agency can obtain a customer=s financial records from a financial institution only when the customer has authorized the disclosure or the disclosure is in response to a judicial or administrative subpoena, search warrant or formal written request by a federal agency. In enacting this statute, Congress intended to protect customers of financial institutions, including national banks, from unwarranted intrusion into their financial records by government agencies. We did not, as you claim, refuse to investigate your problem and we did not deny that we are, in fact, the regulatory agency for Net First National Bank. We cannot determine violations without contacting the bank for more information about your complaint. Again, we cannot investigate your concerns without a signed authorization. Our review, which includes contacting the bank, may take up to 60 days. If you feel that you will incur financial loss or request an immediate resolution, we can only suggest you contact an attorney. If you have questions, please call this office at 1-800-613-6743 and refer to Case #230089. Sincerely, John Dungan Customer Assistance Specialist
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| | Thursday, January 25, 2001 - 04:49 pm Mr. Duncan, I have NO idea why you require my signature. Apparently you either can't read or just haven't bothered to read my complaint. Because I don't have an account with Net First National Bank, there is no privacy to protect. Also, your earlier response indicated that the account number was required, apparently now it is not. In order to move this complaint along, I will waste some paper, sign my name, waste some money, and fax it to you. However, I have to say that apparently you are trying to reduce the number of complaints by making it very difficult for consumers. Where can I find some statistics on the number of complaints the OCC receives, the percentage you decline to investigate for missing info, and the results of investigations? Thank you very much, Christine Baker c: posted at http://www.bayhouse.com/discus/messages/649/1141.html?980478550#POST6605
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| | Thursday, January 25, 2001 - 05:09 pm And in case anyone is wondering why I have VERY little patience, go read Transamerica. Those bastards at the California Department of Corporations did NOTHING. Absolutely NOTHING. Not even a 1 cent fine for Transamerica. I certainly wouldn't be surprised if the OCC did the same: Nothing. And there's nothing I can do about it except publish and document what the government does or doesn't do. Well, the fax is done faxing. Since I couldn't use the computer due to the signature requirement, I'll have to call the OCC tomorrow to confirm receipt.
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| | Friday, January 26, 2001 - 07:46 am > Well, the fax is done faxing. Since I couldn't > use the computer due to the signature > requirement, I'll have to call the OCC tomorrow > to confirm receipt In order to fax something from the computer, I always pick a nice font that LOOKS like cursive handwriting (like BRADELY HAND ITC or BRUSH SCRIPT BT), and use it to "sign" my name. 
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| | Friday, January 26, 2001 - 02:02 pm Christine, Don't know if you saw this or not, but here it is... By the way, I would like to discuss some things with you offline. -Dan http://boardserver.mycomputer.com/read.html?collapse=0&uid=539413&u=Fairterms&id=2340&loc=0&thread=2340&f=1&u=Fairterms
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| | Friday, January 26, 2001 - 03:33 pm Dan, did see that posting, Curtis E-mailed me about it and I commented and changed the subtopic cardratings.org - it took a while, but finally Curtis downgraded the Net 1st card. Also, my E-mail is in my profile, click on Christine Baker (Admin) next to this posting. I'm trying to keep it out of here due to spam. And I forgot to call the OCC today to confirm receipt of my fax. John, I have a scanner and I just need to get my signature on a .jpg. If I don't get to that soon, I'll definitely take your advice.
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