First Premier Bank,[1] headquartered in Sioux Falls, South Dakota, is an issuer of MasterCard brand credit cards in the United States. The bank is known for specializing in a wide range of subprime credit cards that are marketed to individuals with low credit scores.[2]
 | |
| Company type | Private Company |
|---|---|
| Industry | Banking |
| Founded | 1986 |
| Founder | Thomas Denny Sanford |
| Headquarters | Sioux Falls, South Dakota |
Key people | T. Denny Sanford (Owner)
Miles Beacom (CEO - Bankcard) Dana Dykhouse (CEO - Bank) Dave Rozenboom (President - Bank) |
| Revenue | US$ 87.65 million (2016) |
| US$ 24.95 million (2016) | |
| Total assets | US$ 3 billion (2023) |
Number of employees | 2,300 |
| Parent | United National Corporation |
| Website | firstpremier |
History
editThe bank was founded in 1986 and is owned and controlled by T. Denny Sanford.[3][4] In 2020, Sanford was being investigated for possession of child pornography. Investigators obtained a search warrant prior to referring the case to the United States Department of Justice.[5] Sanford was cleared of charges in May 2022.[6]
The typical First Premier Bank MasterCard user uses the card for about 18 months before transitioning to another card with better terms. Sanford described the company as providing a "lifeline" for those with poor credit.[7]
In 2014, it was announced that First Premier Bank had filed a lawsuit against cardhub.com for allowing customers to view rates and terms, as well as for enabling users to review the card.[8] However, the lawsuit was dropped a few months later.[9]
Legal actions against
editIn 2007, the bank settled a case with the New York Attorney General, who claimed that the bank used deceptive practices to market its credit cards. As part of the settlement, the bank paid $4.5 million.[4]
Criticisms
editAs of December 2010, First Premier Bank was reportedly offering a credit card with a 79.9% interest rate and a $300 limit. This was cited by Senator Bernie Sanders as an example of what he called "extortion and loan sharking".[10]
First Premier Bank's CEO, Dana J. Dykhouse, was referenced in a 2014 piece in the Argus Leader as belonging to a group of would-be local benefactors who the author wrote, "should quit gouging poor people who can't make it from paycheck to paycheck, or don't qualify for regular credit cards. ... Loan sharks who charge an obscene profit just because they can don't make good community leaders."[11]
Reviews
editIn April 2018, John Kiernan of WalletHub, a personal finance website, ranked the First Premier Bank MasterCard poorly, giving it 1 star out of 5. He wrote that the card had excessive fees, a low credit limit, and a high annual percentage rate, making it a bad choice for most users.[12]
Awards
edit- Two 2023 Gold Stevie Awards: Contact Center of the Year and Front-Line Customer Service Team of the Year.
- Bronze 2023 Stevie for Customer Service Management Team of the Year.
- Best Banks to Work For - American Banker Magazine 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022
See also
editReferences
edit- ^ John Sullivan (August 16, 2007). "Bank to Pay $4.5 Million to Settle Suit Over Cards". The New York Times. Retrieved August 4, 2022.
- ^ AP Story/NYTimes: First Premier Bank to Pay Penalty, Associated Press (APnews)
- ^ Faturechi, Robert; Arnsdorf, Isaac (August 28, 2020). "Billionaire T. Denny Sanford Was Under Investigation for Child Pornography". ProPublica. Archived from the original on August 31, 2020. Retrieved September 1, 2020.
- ^ a b Shenon, Philip (October 19, 2010). "America's Worst Credit Card: First Premier Bank's Dubious Distinction". The Daily Beast. Archived from the original on September 2, 2020. Retrieved September 2, 2020.
- ^ Arnsdorf, Robert Faturechi,Isaac. "Billionaire T. Denny Sanford Was Under Investigation for Child Pornography". ProPublica.
{{cite web}}: CS1 maint: multiple names: authors list (link) - ^ "Sanford cleared in South Dakota child porn investigation". KELOLAND.com. May 27, 2022. Retrieved April 11, 2023.
- ^ Whelan, David (September 22, 2007). "Dying Broke". Forbes. Archived from the original on July 8, 2015. Retrieved July 7, 2015.
- ^ "Card comparison site gets sued for showing rates, fees". CBS (cbsnews.com). Archived from the original on May 18, 2017. Retrieved September 2, 2020.
- ^ "Lender Drops Challenge to Credit-Card Comparison Website". The Wall Street Journal. January 12, 2015.
taken down links to First Premier from its sites, CardHub.com and WalletHub.com.
- ^ http://www.c-span.org/Watch/Media/2010/12/10/HP/A/41780/Sen+Sanders+Held+a+Tax+Cut+Filibuster.aspx Archived 2010-12-14 at the Wayback Machine Senator Bernie Sanders Speech 3:01:10
- ^ Nipe, Sue (December 18, 2014). "Letter: Community benefactors reap profits from poor". Argus Leader. Archived from the original on September 2, 2020. Retrieved April 15, 2016.
- ^ First PREMIER® Bank Mastercard Credit Card by John Kiernan, Credit Card Editor, WalletHub website, June 8th, 2022