DVD Talk
Nextbank closed by Feds [Archive] - DVD Talk Forum

PDA

View Full Version : Nextbank closed by Feds


matchpenalty
02-08-02, 05:31 PM
http://www.nextbank.com

hope noone had money there.. might take a bit to get it.

Also, they were related to Nextcard it seems

Shay
02-08-02, 07:14 PM
Assuming they were FDIC insured then any depositers will get their deposits back up to 100K. It will probably take some time though.

btbrossard
02-08-02, 08:36 PM
Originally posted by matchpenalty
http://www.nextbank.com

hope noone had money there.. might take a bit to get it.

Also, they were related to Nextcard it seems

Nextcard owned Nextbank. Nextcard is no longer accepting applications.

It will be interesting to see what happens to the credit card operations.

matchpenalty
02-10-02, 07:34 AM
Originally posted by Shay
Assuming they were FDIC insured then any depositers will get their deposits back up to 100K. It will probably take some time though.

Yes, but NO interest from the day they were taken over either

wildcatlh
02-10-02, 10:57 AM
BTW, the FDIC press release:

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of NextBank, National Association, Phoenix, Arizona. The bank was closed today by the Office of the Comptroller of the Currency, and the FDIC was named receiver.

NextBank, an Internet-only bank, had no brick-and-mortar branches. It solicited only certificates of deposit of $100,000 or more and had no checking or savings accounts. NextBank had total assets of $700 million and total deposits of $554 million, of which $29.4 million in 2,075 accounts exceeded the federal deposit insurance limit.

The FDIC received no bids for the bank's deposits. As a result, Monday morning the FDIC will mail checks to the customers of the failed bank for the amount of their insured deposits. Customers with more than $100,000 on deposit at the failed bank should contact the FDIC toll free at 1-877-367-2719 and ask to speak with a claims agent.

The FDIC is still in the process of evaluating the failed bank's assets. Until that process is complete, the FDIC will not be able to provide an estimated cost to the Bank Insurance Fund for the failure of NextBank.

NextBank is the fourth FDIC-insured bank to fail this year and the first in Arizona since Columbia Bank, Avondale, was closed on February 27, 1992.

Seeker
02-10-02, 12:07 PM
Any news as to what happens to Nextcard, credit card accounts, Amazon GCs (I know, minor in the grand scheme of things), because of this?

victant
02-10-02, 07:14 PM
Originally posted by Seeker
Any news as to what happens to Nextcard, credit card accounts, Amazon GCs (I know, minor in the grand scheme of things), because of this?

Minor issue for some, but a major issue for those who have much invested in it! ;) Like me.... :grunt:

hdtvoice
02-10-02, 09:36 PM
i have a nextcard balance of about $2k

be nice to see them just wipe it out!!!

hehe

Seeker
02-10-02, 10:01 PM
Originally posted by hdtvoice
i have a nextcard balance of about $2k

be nice to see them just wipe it out!!!

hehe

That's one of the few things you can probably bet on not happening....

reverb
02-11-02, 03:25 AM
Any news as to what happens to Nextcard, credit card accounts, Amazon GCs (Iknow, minor in the grand scheme of things), because of this?

Why would awarded Amazon gift certificates be effected?

Seeker
02-11-02, 09:29 AM
Originally posted by reverb


Why would awarded Amazon gift certificates be effected?

I think awarded Amazon GCs are fine; it's people's "points" that haven't been redeemed yet for GCs which I think are seriously at risk.

cnicol
02-11-02, 03:26 PM
This sucks...I had no idea next card was in this much trouble! This is the first that I have heard about it!

I have just over 1500 points right now....I just paid my bill the other day...but my "offical" statment was not due untill the 15th.

Are all the points for that month added after your due date? or when you pay your bill?


I guess I should cash out now!?!

Seeker
02-11-02, 03:27 PM
There do appear to be GCs available right now, so I'd cash out, if I had enough points to do so....

(unfortunately, I'm just shy of a $25 certificate)

sracer
02-12-02, 01:55 PM
People with outstanding balances with NextCard, be careful about putting a large payment on the card to bring down the balance.

NextCard is doing some shady and probably illegal things to keep themselves afloat a bit longer.

If you pay down your card ,say $1000, they will not "free up" $1000 of credit on your card, but will "lock out" your card of an additional $1000 (or your credit limit), effectively preventing you from using the card. This will last for a minimum of 14 days. So they're getting the "float" on your payment, and you continue to run up interest charges on the outstanding balance (that doesn't reflect your $1000 payment).

This has happened to me for the past 2 months and I've contacted everyone I could think of to get it straightened out. So I've now switched to another card, and pay only the minimum.

Just a word of caution to others.

MarcusAurelius
02-15-02, 09:22 PM
Originally posted by sracer
People with outstanding balances with NextCard, be careful about putting a large payment on the card to bring down the balance.

NextCard is doing some shady and probably illegal things to keep themselves afloat a bit longer.

If you pay down your card ,say $1000, they will not "free up" $1000 of credit on your card, but will "lock out" your card of an additional $1000 (or your credit limit), effectively preventing you from using the card. This will last for a minimum of 14 days. So they're getting the "float" on your payment, and you continue to run up interest charges on the outstanding balance (that doesn't reflect your $1000 payment).

This has happened to me for the past 2 months and I've contacted everyone I could think of to get it straightened out. So I've now switched to another card, and pay only the minimum.

Just a word of caution to others.

what in the world are you talking about? you are suggesting to people to pay the minimum?

dude, you shouldn't just put a large payment to bring down the balance, you should pay the entire thing every single month. why would you want to pay interest fees? are you talking about overpaying or something?

please nobody do this.

trixie
02-16-02, 10:49 PM
Originally posted by MarcusAurelius


what in the world are you talking about? you are suggesting to people to pay the minimum?

dude, you shouldn't just put a large payment to bring down the balance, you should pay the entire thing every single month. why would you want to pay interest fees? are you talking about overpaying or something?

please nobody do this.

No, he isn't suggesting that, exactly!

I think what sracer is saying (and I should know, 'cause I am his significant OTHER) is that when we have the opportunity to make a large payment to a card with an outstanding balance (all other things, like interest rates, being equal) we want it to go where it will do us the most good. If NextCard not only does not apply the payment for 14 days, increasing our interest charges, but also witholds our credit for those 14 days, we would rather send that money to another card that will credit the payment when received and release our available credit should we want to use it.

BTW, NextCard only does this with payments of over $500. So they claim. They also claim they changed their policy in the new terms of service they mailed out in August. Printed, of course, in microprint.

sracer
02-16-02, 11:24 PM
Originally posted by MarcusAurelius
what in the world are you talking about? you are suggesting to people to pay the minimum?

dude, you shouldn't just put a large payment to bring down the balance, you should pay the entire thing every single month. why would you want to pay interest fees? are you talking about overpaying or something?

please nobody do this.

Do you have a NextCard? Have you made large ($1000+) payments on the card? If not, then don't pay attention to anything I said in this thread. My comments are based on first-hand experience with NextCard and aren't meant to be interpreted as financial advice.

Your "suggestion" of paying off the entire balance every month will get you into trouble with NextCard. If you have a $4000 credit limit with NextCard, and have a $2000 balance, and make a $2000 payment. Instead of having a balance of $0, you will discover that your balance is still $2000 and that you have no available credit.... and you will continue to have no available credit for a minimum of 14 days (even if payment is made by a bank check).

This has happened (with different figures) to me for the past 2 months.

If you use NextCard as your only card, then their behavior puts a major league crimp on what you can do for the next 2-3 weeks. So, by putting a smaller payment down, and holding on to the cash, you will still have some money with which to make larger purchases (until NextCard posts the payment, and frees up the respective credit).

NextCard's deceptive practices hurts people (like myself) who HAVE the money, but use the card for convenience. If you use the card for all purchases, and pay off the balance at the end of the month, then you end up with no cash...and no available credit.

As for my comment on paying the minimum, I was referring to paying the minimum on the NextCard, and moving all card usage to another (more stable card) and making full payments on THAT one... and of course discontinuing all use of the NextCard.

MarcusAurelius
02-17-02, 12:11 AM
my Nextcard (Amazon) Visa balance is almost always $2000+ and i always pay it off in full every month. i never have had any "holding" problems or "lack of credit use" problems or whatever you are talking about.

you seem to be suggesting they do 1 or 2 possible things here (can't tell which):

1) hold payments.
i haven't seen them "hold" my payment for half a month like you suggest. i just took a look at my bank statement, found the last credit card payment and compared it to when it posted to my credit card account on-line. it came out of my bank and posted to the credit card account the same day (not 14 days later). so i'm a little lost as to what you're talking about on that one.

2) hold credit use even after payments have been made and/or posted.
i don't have a clue if they do this but it doesn't make much sense if they do. Credit card companies make money off fees from the companies that accept their card (stores, whatever) and fees from people who don't pay off their entire balance every month. if you don't have access to your credit line, you can't exactly go to the store and buy anything with it, thus they can't charge that store the fee for processing the payment and they also can't charge you the fee for not paying it off a month later. lost on this one too.

i would think either of the 2 would be illegal. there has to be some kind of regulation on the processing and posting of payments. otherwise they could hold your payment indefinitely and simply never post it. do we have any DVDTalk bankers or lawyers here?

the only problem i've had recently is some weirdo $65 charge from some fake brokerage firm called "Ritterford Ventures" supposedly out of New York with a phone number that automatically hangs up on you. I called Nextcard and told them to get rid of the charge. They did.

then again, banks, insurance and oil companies rule the world. i wouldn't put it past them to try and pull a fast one on us.

but for you guys, i suggest you need to go to a different card.

Mark Holtz
02-17-02, 01:51 AM
Although I'm not a NextBank cardholder, I'm wondering whats going to happen to the charge cards of NextBank cardholders. Specifically, if they have outstanding charges for pre-orders or get billed directly to their credit card. I'm even wondering if I can get the bank codes to pass along to our accounting department.

Seeker
02-17-02, 12:15 PM
Originally posted by MarcusAurelius


the only problem i've had recently is some weirdo $65 charge from some fake brokerage firm called "Ritterford Ventures" supposedly out of New York with a phone number that automatically hangs up on you. I called Nextcard and told them to get rid of the charge. They did.



Yeah, Ritterford Ventures bit me too for $84.95.... I'm still trying to get it off my account (they took it off once, then it reappeared recently...) At least I haven't (and won't) PAY it...

happypants
02-17-02, 12:41 PM
Originally posted by sracer


Do you have a NextCard? Have you made large ($1000+) payments on the card? If not, then don't pay attention to anything I said in this thread. My comments are based on first-hand experience with NextCard and aren't meant to be interpreted as financial advice.

I make a payment that size or larger every month, but I also pay off my card every month. I never carry a balance. My credit limit is over $6000. I've never had any problems like you describe.


Your "suggestion" of paying off the entire balance every month will get you into trouble with NextCard. If you have a $4000 credit limit with NextCard, and have a $2000 balance, and make a $2000 payment. Instead of having a balance of $0, you will discover that your balance is still $2000 and that you have no available credit.... and you will continue to have no available credit for a minimum of 14 days (even if payment is made by a bank check).

I pay through NetBank billpay, and it usually takes a week for it to appear at Nextcard. Once the payment is posted, my available credit goes back up. I've never had my card denied, but, then again, on average I'll have $4500-$5500 available credit per month.


If you use NextCard as your only card, then their behavior puts a major league crimp on what you can do for the next 2-3 weeks. So, by putting a smaller payment down, and holding on to the cash, you will still have some money with which to make larger purchases (until NextCard posts the payment, and frees up the respective credit).


I do use it as my only card and am worried if NextCard goes under. I'll have to tell all the companies who auto charge to my cc the new number, once I get a new card. Not a huge deal to me and to be expected.

I don't understand how not paying down a cc balance is a good idea. If I had a choice, I'd rather not pay down a home equity loan, because, at least you can deduct the interest on your taxes.

My main question is, if Nextcard is causing you all these problems, why stay with them?

MarcusAurelius
02-17-02, 01:56 PM
Originally posted by Seeker


Yeah, Ritterford Ventures bit me too for $84.95.... I'm still trying to get it off my account (they took it off once, then it reappeared recently...) At least I haven't (and won't) PAY it...

no sh*t? so i'm not the only DVDTalker to get robbed by Ritterford Ventures eh? I wonder how many people they've hit up and where they got our numbers?

what surprised me is that they didn't try and charge a larger amount. i mean, if you're going to rob someone, why not clean them out completely?

Seeker
02-17-02, 02:03 PM
Originally posted by MarcusAurelius


no sh*t? so i'm not the only DVDTalker to get robbed by Ritterford Ventures eh? I wonder how many people they've hit up and where they got our numbers?

what surprised me is that they didn't try and charge a larger amount. i mean, if you're going to rob someone, why not clean them out completely?

Yep, even made a thread about it in December:

http://www.dvdtalk.com/forum/showthread.php?s=&threadid=168994&highlight=Ritterford

They want to make a small enough charge (less than $100) so that many people will not notice and will simply pay it... A lot of people DON'T check their bills that closely.... obviously you and I do.

Colleen
02-18-02, 12:36 PM
Originally posted by MarcusAurelius


no sh*t? so i'm not the only DVDTalker to get robbed by Ritterford Ventures eh? I wonder how many people they've hit up and where they got our numbers?

what surprised me is that they didn't try and charge a larger amount. i mean, if you're going to rob someone, why not clean them out completely?

I'm sure they bank on a lot of people either not noticing the charge or dismissing the charge as something they forgot about. You must have been absent the day they taught that in school. ;)

sracer
02-18-02, 02:55 PM
Originally posted by happypants

My main question is, if Nextcard is causing you all these problems, why stay with them?

Ummm, I didn't!

Shay
02-19-02, 08:56 PM
Originally posted by sracer
People with outstanding balances with NextCard, be careful about putting a large payment on the card to bring down the balance.

NextCard is doing some shady and probably illegal things to keep themselves afloat a bit longer.

If you pay down your card ,say $1000, they will not "free up" $1000 of credit on your card, but will "lock out" your card of an additional $1000 (or your credit limit), effectively preventing you from using the card. This will last for a minimum of 14 days. So they're getting the "float" on your payment, and you continue to run up interest charges on the outstanding balance (that doesn't reflect your $1000 payment).

This has happened to me for the past 2 months and I've contacted everyone I could think of to get it straightened out. So I've now switched to another card, and pay only the minimum.

Just a word of caution to others.
scarer, I am not sure if you are advocating paying the minimum, but I think you are on to something about payments and Nextcard. Here is my account summary:

Credit Limit: $14,000.00
Current Balance: $5,822.81
Minimum Payment Due: $83.00
Payment Due Date: 3/2/02
Available Credit:* $6,887.00
Last Payment Received: $3,072.45
Last Payment Received On: 1/25/02


I doubt that Mariott is holding that much of my credit limit on my card.


Content Relevant URLs by vBSEO 3.2.0