Write It Down, Never Give Up

Maria of Oregon City, OR, writes (1/19/01):
I received a invitation letter from Fleet in Sept. 2000 to open an account with them and receive an introductory rate of 0% interest until July 2001, and thereafter a 10.99% fixed rate. When I called to inquire about this offer, I was asked to complete an application by phone, which I did. At the end of the conversation, I was told the rate would be 10.99% interest on the balance transfer that I had requested. I explained I had read their invitation letter to extend a rate of 0% until 7/01 and was not interested in a rate of 10.99%. I explained I would prefer to shop around and thought I could obtain a better rate elsewhere.

I was amazed on October 10,2000 to receive a letter from Fleet telling me they had paid $8,100 to MBNA on my behalf and welcoming me as a new member. I immediately contacted them and was told to write a letter cancelling the account and requesting them to stop payment on the check to MBNA. I did so on October 11. In addition, I sent a letter to MBNA requesting they refund the $8,100. to Fleet and explained I had never authorized Fleet to open an account in my name or pay that balance. MBNA replied that they could refund the money to Fleet but would have to increase my rate to 19.99% as that was their policy.

On 11/27/00, I received a letter from Fleet acknowledging my correspondence with them. It apologized for my dissatisfaction but claimed since they had made payment to MBNA on my behalf, I now must make payments to them. I believed they were forcing me into a business relationship with them and wanted to ascertain my rights and the best way to proceed. I contacted our state attorney general's office of consumer complaints and was subsequently referred to the US Office of the Controller of Currency. I provided them with documentation and written explanation of my situation. They contacted Fleet by mail on 12/5/00 and have yet to hear from them.

In addition, my home has been called up to 4 times a day by Fleet representatives requesting payment on the account. I was advised by the Controller of Currency to request Fleet to stop calling our residence by certified mail, which I did. I continue to receive calls and was told by the last caller named Jim Stanger that Fleet would continue to call despite the letter requesting they not call. He said he didn't care when I informed him he was in violation of the Fair Debt Collections Practice Act. Today, in the mail, I received a letter from Fleet explaining that they would cease and desist with calling my residence as per my request but they would continue to report me to the National Credit Bureaus as delinquent.

As I understand the law, disputed charges are not to be reported until the dispute is resolved. I contacted the Oregon State Attorney General's Office division of consumer affairs and was told that is correct, and that Fleet was violating the Fair Credit Reporting Act. They also suggested that I may need to contact my own attorney regarding the matter. The United States Office of the Controller of Currency is the authority over Fleet and they have until the end of January (29th) to render a decision regarding this matter. I would like to resolve this but want to protect my rights and credit report, which until this date, has been immaculate.

On May 5, Maria gave us an update:

After countless correspondence and phone calls, I have finally resolved my dispute with Fleet. The United States Comptroller of the Currency intervened and contacted Fleet on 3 different occasions to hear their side of the story. Fleet did not respond initially but when the deadline neared, a vice president of Fleet Bank, Ann Block, wrote a letter.

She claimed on behalf of Fleet that Fleet was merely following my instructions but that since I was unhappy, they would reverse the outstanding late fees and interest charges to the initial amount they had paid off MBNA with. By this time, the account had been turned over to a collection agency which was now contacting me since I had written to Fleet and requested they stop calling my home regarding the account.

The collection agency stated I must make payment to them now and not to Fleet. It was my understanding that according to the Fair Debt Collection Practice Act, a account in dispute was not to be turned over to collection. I also wrote to the collection agency and asked that they stop calling our home since the account was in dispute. I sent it certified mail, return receipt requested. I received the signature postcard back as proof that the collection agency had received my request.

I still received calls from this agency and when I told them they had received a letter by certified mail requesting they stop calling my home, they demanded to know who had signed for the letter at their office. The signature was unreadable, I could decipher maybe one letter of the name. They then requested that I fax them a copy of the letter and the signature card from the certified mail. I did this at my own expense.

After receiving a copy of the letter Ann Block had sent to the Office of the Comptroller of Currency, I contacted her by phone. I live in Oregon and it is legal to record phone conversations initiated by a resident of Oregon. I did record the phone call with Ann Block and asked her specifically: where to send payment of the initial amount they had paid to MBNA, would this account be reported negatively on my credit report and asked if she had access to the recorded copy of my initial phone conversation.

She told me that she had been told by the customer service department of Fleet that the application had been made by mail and not by phone. I then asked her if she had asked Customer Service for a copy of this application. She stated that they had not yet been able to locate this application. I told her I would be interested to see a copy of the application when and if it does surface.

I have yet to receive a copy of this application. Probably because it doesn't exist. I wrote then to the Comptroller of Currency and explained that while I appreciated their help in this dispute, the fact that Fleet had taken action to force me into a business relationship with them was never addressed. Fleet would not ever admit any wrongdoing and took the position of merely trying to placate me since I was an unhappy customer. I did pay off the initial balance with Fleet and concluded my relationship with them.

I sent a copy of the payment check to the collection agency additionally as well as a letter explaining my instructions from Ann Block. I recently had a loan approved and am not aware of any negative information on my credit report. However, I would never consider a business dealing with Fleet.

Ann Block was helpful and polite but it took me five months and probably 40 hours of work to contact a "real" person at Fleet with some intelligence and knowledge. I would advise anyone with similar problems these points.

1. If you live in a State where it is legal to record phone conversations, record every conversation you have with a credit card company. Radio Shack has equipment for a reasonable fee and can instruct you Linda Tripp style, in how to use it. This is especially important with the application and any terms you agree to. You may need to notify the other party that you are recording the conversation to make it legal. In Oregon, you do not.
2. Pay attention to the address on any bill that you dispute about where to send correspondence. DO NOT CALL. Calling does not preserve you rights. A lawyer told me that the credit card companies routinely use small print and colored ink to make the address for correspondence difficult to see for elderly or rushed people. Protect yourself.
3. Send every letter to the company by certified mail, return receipt requested. Even if it is addressed to a post office box, the carrier can sign that he or she placed it in the box and you now have proof you correspondence was received by the company.
4. Read the pamphlets and information available from the Federal Trade Commission. It outlines your rights and laws pertaining to your situation. Many times I had to quote the laws to the Office of the Comptroller of Currency regarding Fleet's obligations to respond under the law.
5. Perseverance, perseverance, perseverance. I wrote a total of 36 letters and spent numerous hours on the phone regarding this situation. There was a lot at stake and I hung on until it was resolved. I never did get Fleet to admit their wrongdoing but did get the account settled for the original amount and have no negative information on my credit report. Further, if anything shows up negatively on my report, I have a recording from Ann Block, vice president of Fleet, claiming they would not report any negative information on my credit report as long as I paid the initial amount they had paid to MBNA on my behalf.

I have a good relationship with MBNA. I would recommend them because of my positive dealings with their customer service department followthrough on their claims.

As a side note, a consumer law attorney that I consulted with stated that these kinds of events are becoming more common. Although there are laws in place to protect consumers from unethical tactics by credit card companies, there is virtually no enforcement of the laws. The credit card companies lobby heavily in Washington and the teeth of these consumer laws have been softened. Essentially, our leaders have sold out to big business. I intend to contact my local congressman with my story and question his or her position on consumer protection laws.