My OCC Complaint

In an earlier post, I told you that I had filed a complaint with the OCC. The complaint is based on the fact that I wanted to see my account agreement (the contract) before I signed it. Credit card applications have a series of disclosures, required by law, to make you aware of the "pertinent" terms. What most people may not realize is that signing the application is creating a contract based on the disclosures as well as an unseen agreement that will come with the card.

I received a call this morning from MBNA, the subject of the complaint. The gentleman I spoke with had reviewed my complaint and wanted to have a personal conversation with me. The explanation was essentially that their contractual terms vary depending on which of the thousands of programs they have is used, and what the results of the credit report are. It is too difficult to provide an agreement for each individual applicant until the account is opened.

This explanation sounds good, but falls short. I don't think there is any explanation for expecting consumers to take "personal responsibility" for their commitments and then convincing them to commit to a contract they have yet to read. Sure the "pertinent" terms are in the disclosure, but who decides what is pertinent? Folks, it is simply wrong to sign a contract before you read and understand it. MBNA expects you to open an account, which goes on your credit report (inquiry and open account), before you get to see the contract you signed. The credit card company also gets all your personal financial information in their database. It doesn't matter how difficult it is, MBNA should simplify and make the transaction more reasonable, if they are going to hold cardholders to a high standard of "personal responsibility."

I still am waiting for the explanation from the OCC. He informed me that I would receive a letter from the OCC with the explanation he gave me. I'll keep you posted.