First Premier Bank Credit Card

Banks report 19 percent decline in service fees

The banking industry saw a 19 percent decrease in service fees since new overdraft regulations went into effect last July, according to a new study.

That's good news for consumers who seem to be saving on overdraft charges, but bad news for banks because it cuts into their income.

The regulations allow customers to choose whether they want banks to cover debit card purchases and ATM withdrawals if they don't have enough money in their accounts. Such an overdraft can cost a customer as much as $35 per transaction.

The study by Market Rates Insight, which analyzed quarterly FDIC reports, found that the overall service charge on deposit accounts at FDIC-insured institutions decreased by $1.6 billion during the past three quarters. The largest hit was a $1 billion decrease that came during the third quarter of 2010 just after the new rule went into place. The fourth quarter saw a $600 million decrease and the first quarter of 2011 was flat, signaling that the losses are starting to level out, said Dan Geller, executive vice president.

A Consumer Reports poll in November found that 22 percent of bank customers had opted for overdraft protection.

"The days of the $2 cup of coffee that winds up costing you $39 are now over," Pam Banks, senior policy counsel, said after the rule went into effect. "This new rule puts the power back in consumers' pocketbooks. It means, unless you ask for overdraft protection, your card will be denied if you don't have enough money. Now your latte may still be expensive, but it won't end up costing you the price of a pair of shoes."

Geller said there have been some unintended consequences to the new regulation because overdraft protection is a form of credit.

"Those who did not opt in for the service don't have this extended credit," he said. "If they don't have the money in an account to buy an item, they probably won't buy it," he said.

The decrease in fees also means less revenues for banks. One way banks are making up the loss is by doing away with free checking.

A recent report by Moebs Services, a company that analyzes data about financial institutions, found that about half of Wall Street banks are offering free checking - a decline of almost 14 percent.

Sioux Falls-based First Premier Bank has noticed a decline in overdraft fees. The bank now is more careful with whom it allows to open checking accounts, president and CEO Dana Dykhouse said.

Does anyone have a First Premier Bank credit card? | Stock Quotes ...

I had one they are ok if you have bad credit. They have higher interest rates and also I believe a high yearly fee. I really had nothing bad happen to me, It is expensive card, but its good to build up your credit. I have now that is much worse, Rewards 660! Dont ever sign up for it, they have no idea what they are doing. You might also want to try orchardbank.com they have pretty good rates and are easy to get approved for!

I would never even considered this ‘card’ because their fees are excessive and actually, by the time you add up processing fees, establishment fees, annual fee.. yada yada… it brings you to having left about $20 from your $200 credit limit (read about $180 in fees). If you really want to get a card to re-establish your credit.. try Orchard Bank or Capital One. If you can’t get a card through one of them (they are the easiest IMHO..I got both within 1 year post BK). You could also go the route of a SECURED credit card through a reputable bank .. just make sure they report to one or all of the Bureaus, or it’s useless. The idea is to BUILD CREDIT and that won’t happen if they don’t report.. so *ask* before agreeing.

If you have the opportunity to get your Money back from FIRST PREMIER.. go for it. All around a really bad deal.. they really are ‘loan sharks’ in the purest form… and they should be shut down for predatory lending.

I have one, and the only good thing I can say about it is it’s nice to have a credit card sometimes. They will put at least $150 in charges on it from the beginning that you automatically have to start paying for, and $60 a year after that. Depending on what the limit is they gave you, it’s probably not worth it, but if you already have the card, you’re locked in. the best you can do is pay what they have charged you and cancel the card to prevent the future charges.

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