NextCard Complaint - Poor Business Practices
BUDA, TEXAS -- I am writing to provide you with information on poor business practices on behalf of NextCard, and the affiliation with Amazon.com.
XXX recently acquired an Amazon.com NextCard Visa to replace the Barnes & Noble MasterCard that we use for our monthly purchases. XXX received an initial credit limit of approximately $XXX . During a period of four weeks, XXX and I incurred approximately XXX of charges on our new card. Prior to any payment history being established, our credit limit was slashed in half, and an email, sent unencrypted, and without return receipt request, was sent to XXX email address from NextCard informing him of the credit limit change.
Several problems are present with this situation. I will explain each individually.
First, the credit limit was slashed due to expenses incurred over a short period of time (four weeks), with no payment history present. However, we were told that due to the “history” of our account (which was only four weeks old), the company felt compelled to cut the limit in half. Had NextCard waited for the first payment to establish a payment history, they would have found that we pay our Visa card balance in full every month, and would therefore be considered low or no risk. We utilize our credit card to incur our monthly expenses. This gives us the ability to track our spending easily. Additionally, your company earns quite a bit of money per month due to your charges against vendors for use of the card.
Second, XXX credit is stellar. There was no reason for the credit limit to be reduced. XXX income is well within the range for the credit limit originally granted. We are completely solvent, and our debt to income ratio is nonexistent. Further, we make well over XXX per annum.
Third, the email that was sent to inform XXX of his credit limit reduction was not sent encrypted, nor was it sent with return receipt requested. XXX did not receive the email. XXX verified the time in which the email was sent, and can verify that he did not receive the email from NextCard. You have a very large problem at hand. Email has not been considered legal documentation. Nor did your company take the necessary action to determine that the customer received the email, and add the receipt of said email to the customer’s record. This presents a huge legal liability on the part of NextCard. Further, any information sent regarding the account number, credit limit, balance etc. that is sent unencrypted via email is considered a security breach, and is a serious legal breach within itself.
I am appalled at the business practices set forth by NextCard regarding our use of a newly received card. We, of course, have cancelled the card, and never intend to use NextCard again. Further, we encountered incompetent and rude customer assistance on behalf of NextCard. I was never allowed to speak to a manager, nor was I allowed to escalate the problem.
In the future, I would expect NextCard to establish a TRUE charge and payment history before reducing an individual’s credit limit. Additionally, I expect them to send email encrypted, with return receipt requested, and a follow-up letter that is hard copy for legal purposes.
I intend to report our experiences to every online reporting agency for poor customer service and poor business practices. We further intend to boycott purchases from Amazon.com until confirmation of receipt of this letter is received, and a proper response is issued to both XXX and myself. XXX and I utilize Amazon.com for many purchases, and of course, we will find alternative means to purchase our products. However, we enjoyed using Amazon.com for our purchasing, and would like to continue in the future.
My experience with NextCard, and its affiliation with Amazon.com have been atrocious, and I am extremely disappointed in the business practices of NextCard. We have returned to our Barnes & Noble MasterCard, and will continue to use this card, as we are considered stellar clients and are treated as such.