Direct Merchants Bank
Direct Merchants Bank, owned by HSBC Bank Nevada, is one of the largest banks that offer Mastercard to consumers. In recent years, cardholders have had numerous complaints about the service offered from the bank. These complaints span multiple facets of the bank’s operations from their customer service to policies about operations.
Among all the complaints Direct Merchants Bank cardholders have one of the most common is about the card’s interest rates.
Some cardholders have seen interest rates as high as 31.9%. Such a high interest rate can make it difficult for even the most prosperous of cardholders to repay the debt. Not all DMB cardholders started out with an interest rate so high. In most cases, the cardholder’s interest rate started out low. After a period of time, DMB increased the interest rate on the credit card, usually without warning or explanation as to why the interest rate was increased.
One cardholder saw his interest rate increase after complaining to Direct Merchants Bank customer service about the unexplained introduction of a monthly service charge. While the customer was successful in having the monthly fee waived, he was not able to dodge an increase in his interest rate. DMB gave no explanation for the interest rate increase.
Another common complaint of Direct Merchants Bank cardholders is in regards to late payment fees. Some customers receive late charges on their credit card even after payment has cleared their own banks. When making an inquiry to customer service, it seems the company has a “policy” of holding payments for a certain period of time, regardless of the fact that payment has cleared the bank. One consumer even complains of receiving his statement in an untimely manner that makes it impossible to make payment by the credit card closing date.
In an attempt to rectify surprise interest rate increases and late posting of payments, DMB cardholders find that customer service is not very much of a service at all. Cardholders are often left with no explanation or solution to their problems. Attempts to speak with a supervisor or other authority are often unsuccessful.
Direct Merchants Bank finds ways to circumvent lawsuits brought on by fed-up cardholders. In one particular incident, a cardholder brought litigation to DMB because it charged her late fee larger than that allowed by the state of her residence. DMB was able to dodge the lawsuit by holding that it was subject to the laws in the state of its origin.
Read more consumer complaints against Direct Merchants Bank or other banks by visiting www.consumeraffairs.com. You may also find more reviews on national banks or our skim our collection of credit card articles.