Consumer complaint received 2020-06-03
Company: Synovus Bank
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
I APPLIED FOR THE FIRST PROGRESS SECURED CREDIT CARD BACK IN XX/XX/2020 AND WAS APPROVED AFTER MY {$200.00} SECURITY DEPOSIT MADE AT APPLICATION WAS VERIFIED. 

ALMOST IMMEDIATELY I RECEIVED A STATEMENT FOR XXXX XXXX ATTACHED ) THAT REQUIRED I PAY THE ANNUAL FEE OF {$49.00} BY XX/XX/XXXX. ACCORDING TO THIS MAILING A CARD AND THE AGREEMENT TERMS WERE IN THE MAIL. 


HAVING NOT RECEIVED MY CARD BY LATE XXXX, I CALLED THE CUSTOMER SERVICE LINE WHERE I WAS TOLD I SHOULD RECEIVE MY CARD BY XXXX XXXX, AND THAT IT HAD INDEED BEEN MAILED. WHATEVER DATE I CALLED, I NOTED WAS EXACTLY 9 BUSINESS DAYS FROM WHENEVER THE AGENT I SPOKE WITH SAID THE CARD HAD BEEN MAILED. I NEVER RECEIVED THAT OR ANY CARD WELL INTO XXXX. 

ON OR AROUND THE SECOND WEEK IN XXXX, I RECEIVED THE PIN CODE FOR MY ABSENT FIRST CARD. I STILL HAD NOT RECEIVED MY PHYSICAL CARD AND THIS MAILER WITH THE PIN INDICATED IF I HADN'T RECEIVED IT TO CALL AND INFORM CUSTOMER SERVICE. 

I DID SO IMMEDIATELY. THEY MENTIONED THAT I HAD ALREADY BEEN ISSUED TWO CARDS, ( THE SECOND I NEVER REQUESTED ) BUT WOULD SEND A THIRD WHICH I WOULD RECEIVE IN 7-10 DAYS. I NEVER RECEIVED A CARD BY XX/XX/XXXX WHEN THE ANNUAL FEE OF {$49.00} WAS DUE. 

ON XX/XX/XXXX, I CALLED CUSTOMER SERVICE TO TELL THEM I WOULD NOT BE PAYING THE FEE BECAUSE I HAD NEVER RECEIVED A CARD FOR MY ACCOUNT AND TO DO SO WOULD BE UNCONSCIONABLE. THEY EXPLAINED TO ME THAT THIS WOULD VIOLATE THE CARDHOLDER AGREEMENT AND I WOULD BE REPORT3ED TO ALL 3 CREDIT BUREAUS. I KNEW THAT FORCING ME TO PAY THE FEE WAS ILLEGAL, AND INFORMED THEM THAT THIS TRANSACTION WAS NOT LEGAL AND THAT THEY WERE IN VIOLATION AND I WOULD FILE A COMPLAINT. 

I WAS PLACED ON HOLD FOR 5-10 MINUTES AND THE LADY CAME BACK ON THE LINE TO AFFIRM THE CORPORATE DECISION THAT I WOULD BE RESPONSIBLE FOR THIS FEE OR WOULD BE REPORTED TO ALL XXXX BUREAUS, AND TO TELL ME THAT AS A COURTESY THEY WOULDN'T CHARGE ME {$10.00} TO USE THEIR EXPEDITED PAY BY PHONE SERVICE. I PROTESTED THE USE OF THIS SERVICE AND CHARGING OF ANY FEES BECAUSE I STILL DID NOT HAVE ACCESS TO USE MY ACCOUNT NOR WAS I PROVIDED ALL OF THE INFORMATION TO USE THE CARD ELECTRONICALLY ( NOT THAT I WANTED TO ). 

I EXPLAINED TO THE CUSTOMER SERVICE REP THAT I WANTED MY ACCOUNT NOTED THAT I WAS BEING FORCED TO PAY THE FEE BY THREAT OF BEING REPORTED NEGATIVELY TO THE CREDIT BUREAUS, I HAD APPLIED FOR THE CARD SPECIFICALLY TO IMPROVE MY CREDIT SO THIS WAS NOT AN IDLE THREAT, THAT I WAS ONOY PAYING THE FEE AS A RESULT OF THE THREATS, AND I DEMANDED TO RECEIVE A CARD EXPEDITIOUSLY SO I C OULD ACCESS THE ACCOUNT I WAS BEING HELD HOSTAGE WITH AND CHARGED FOR. 

THE LADY OBLIGED AND READ THE NOTES BACK TO ME AND THEN REQUESTED MY ELECTRONIC ROUTING AND CHECKING ACCOUNT NUMBERS FOR MY PERSONAL BANK. THE CHARGE WAS MADE IMMEDIATELY AND POSTED EARLY A.M. XX/XX/XXXX. I HAVE STILL NOT RECEIVED CARD. 

CARD ISSUER, FIRST PROGRESS, IS IN VIOLATION OF FDIC REGULATION 6500 SUBSECTION 1026.52 LIMITATIONS ON FEES WHICH STATES : " EXCEPT AS PROVIDED IN ( A ) ( 2 ) OF THIS SECTION, THE TOTAL AMOUNT OF FEES A CONSUMER IS REQUIRED TO PAY WITH RESPECT TO A CREDIT CARD ACCOUNT UNDER AN OPEN-END ( NOT HOME-SECURED ) CONSUMER CREDIT PLAN DURING THE FIRST YEAR AFTER ACCOUNT OPENING MUST NOT EXCEED 25 PERCENT OF THE CREDIT LIMIT IN EFFECT WHEN THE ACCOUNT IS OPENED. FOR PURPOSES OF THIS PARAGRAPH, AN ACCOUNT IS CONSIDERED OPEN NO EARLIER THAN THE DATE ON WHICH THE ACCOUNT MAY FIRST BE USED BY THE CONSUME TO ENGAGE IN TRANSACTIONS. '' HERE THE CARD ISSUER HAS ILLEGALLY FORCED ME TO PAY A FEE OF {$49.00} DOLLARS, UNDER DURESS CAUSED BY A VALID THREAT TO MY FINANCIAL WELLBEING AND UNDER DIRECT PROTEST BEFORE AND DURING THE PAYMENT PROCESS, BEFORE THE ACCOUNT WAS OPENED UNDER THE TERMS OF THE REGULATION. SPECIFICALLY, THE ACCOUNT IS STILL NOT OPEN FOR PURPOSES OF FEE APPLICATION BECAUSE THE ISSUER STILL HAS NOT PROVIDED AN ACCOUNT THAT MAY BE USED BY THE CONSUMER TO ENGAGE IN TRANSACTIONS. ISSUING A CARD WHICH HAS NOT BEEN EFFECTIVELY DELIVERED DOES NOT CONSTITUTE " ABLE FOR USE BY THE CONSUMER TO ENGAGE IN TRANSACTIONS. '' EVEN IF A MERCHANT WERE TO ALLOW ME TO PROVIDE THE NUMBER PROVIDED ON MY STATEMENT, I STILL DO NOT HAVE ACCESS TO THE EXPIRATION DATE OF THE CARD, THE CID OF THE CARD, NOR HAVE I SIGNED THE CARD OR HAVE I BEEN FURNISHED THE ENTIRE CARDHOLDER AGREEMENT ( PART OF WHICH IS ONLY FURNISHED IN ACCOMPANYMENT WITH THE PHYSICAL CARD DELIVERY ). 

I FIND THESE CIRCUMSTANCES A TOTAL VIOLATION AND FEEL STRONG-ARMED INTO PAYING THE ANNUAL FEE. I FEEL VIOLATED GENERALLY AND EVEN THOUGH SUPPOSEDLY A FOURTH CARD WAS ISSUED XX/XX/XXXX, I HAVE STILL NOT RECEIVED A CARD OR ANY WAY TO ACCESS THESE FUNDS AS OF TODAYM XX/XX/2020. THIS MEANS THAT THEY HAVE BEEN HOLDING {$200.00} DOLLARS SINCE EARLY XXXX WHICH I AM NOT RECEIVING ANY INTEREST ON, FORCED ME BY THREAT TO PAY THE ANNUAL FEE, AN ADDITIONAL {$49.00} ON XX/XX/XXXX, AND HAVE STILL PROVIDED ME ABSOLOUTELY NO SERVICES AND NO CREDIT LINE AS PROMISED WHATSOEVER.

Company response to consumer: Closed with explanation