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Plastk Visa Credit card holders are out thousands of dollars
June 25, 2023
6:51 am
Wayno
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Customers who signed up for a Plastk secure credit card ( Visa through Plastk Financial & Rewards ) tell CBC Go Public they're out thousands of dollars after not getting their security deposits back, something the business owner blames on the bank he partnered with.

https://www.cbc.ca/news/business/marketplace-cheat-sheet-june25-1.6886428

Plastk promises cardholders the chance to improve their credit scores by reporting their transactions to the credit bureau Equifax.

As a secured card, the credit limit matches whatever customers prepay for a security deposit — between $300 and $10,000.

Plastk says customers can cancel any time and get their deposit back after a two-month holding period if the account is in good standing.

But dozens of customers CBC's Go Public spoke to, and hundreds more who have complained online, say Plastk isn't giving their deposits back.

June 25, 2023
8:40 am
Rail Baron
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A sad story indeed. Now that the EQ bank card is available, would using such a card serve the same function that this poor woman was trying to achieve by dealing with Plastik?

EQ seems a much more reliable way to have a credit-like card tied to one's savings in real time.

June 25, 2023
9:23 am
Norman1
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The answer is no because the EQ Bank Card is a prepaid MasterCard and not a MasterCard credit card.

There is no credit being extended by Equitable Bank and being repaid. So, no reporting to Equifax or TransUnion to improve one's credit record.

A card like the Capital One Guaranteed Secured Mastercard would be needed.

June 25, 2023
11:29 am
RetirEd
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Secured credit cards are a dreadful deal - they charge the client interest on month-end balances even as they hold the money to pay the bills, without paying any interest on the secured deposit!

Given how easy it is to get a low-limit Canadian Tire or similar card, one would have to be a seriously bad risk and desperate to get a secured card. A debit card lets one earn a few pennies of interest and pay no interest, as well as preventing excess debt buildup.
RetirEd

RetirEd

June 25, 2023
1:04 pm
Norman1
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The Capital One secured MasterCard doesn't charge any interest if the balance is paid off every month. Just like a regular unsecured credit card.

It is not easy to get even a low-limit credit card with a blemished credit record. The large card issuers don't even bother to have an actual underwriter spend time reviewing applications with FICO score below a certain threshold. A computer-generated decline letter is just printed, stuffed into an envelope by another machine, and mailed.

Might be worth case-by-case underwriting for a $500,000 mortgage. That's what alternative lenders like Home Trust specialize in. But, not worthwhile for a credit card with a $500 limit.

June 25, 2023
6:08 pm
Doug
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I'm not sure why the owner of Plastk is claiming to CBC Marketplace that it's Digital Commerce Bank that holds the customers' secured credit card deposits. It's true that Digital Commerce Bank provides credit card issuance and fulfillment services to Plastk, but part of the confusion here seems to be customers believing their cash security is held as a secured balance on their credit card. If it were, my understanding is it would be protected by CDIC, since CDIC protects credit card credit balances (whether regular or prepaid credit cards), but that is not the case because the cash security is held separately by the credit card company / credit card issuer.

Someone is lying here, and I doubt it's Digital Commerce Bank.

Either that or that someone is completely incompetent in thinking Digital Commerce Bank holds the deposits.

Cheers,
Doug

n.b. Digital Commerce Bank used to be DirectCash Bank. It was bought by Cardtronics a few years ago, and Cardtronics was bought last year by ATM manufacturer NCR Corp.

June 27, 2023
1:24 am
RetirEd
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Norman1:

The Capital One secured MasterCard doesn't charge any interest if the balance is paid off every month. Just like a regular unsecured credit card.

True, indeed. A few years ago, a federal law forbade interest on new charges for the first month, even on accounts carrying balances. I should have been more specific.

But putting that security deposit into a bank account and using a debit card is a better win - unless one plans to run up debts one can't pay. Oh, well, that's a popular position these days. I hope less so for those of us in this cohort.
RetirEd

RetirEd

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