First Premier Bank
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1986 |
| Founder | T. Denny Sanford |
| Headquarters | Sioux Falls , United States |
Key people | Dana J. Dykhouse (CEO) |
| Products | MasterCard credit cards (subprime) |
| Owner | T. Denny Sanford |
First Premier Bank, a privately held financial institution located in Sioux Falls, South Dakota, focuses on offering MasterCard credit cards designed primarily for consumers with low credit scores, specializing in subprime credit products.
History
Established in 1986, First Premier Bank is under the ownership and leadership of T. Denny Sanford. In 2020, Sanford faced an investigation concerning child pornography allegations but was fully exonerated by May 2022.
Typically, cardholders use the bank’s MasterCard for about 18 months before moving on to credit options with more favorable terms. Sanford has characterized the bank’s mission as providing a "lifeline" to individuals struggling with poor credit histories.
In 2014, First Premier Bank initiated legal action against cardhub.com due to its publication of the bank’s rates and customer feedback but withdrew the lawsuit after several months.
Legal actions against
In 2007, the New York Attorney General reached a settlement with the bank regarding accusations of misleading credit card marketing practices, resulting in a $4.5 million payment from First Premier Bank.
Criticisms
As of December 2010, First Premier Bank offered a credit card featuring a 79.9% interest rate and a $300 credit limit, which prompted Senator Bernie Sanders to denounce it as "extortion and loan sharking."
In 2014, CEO Dana J. Dykhouse faced criticism in an Argus Leader article for generating profits through high-interest lending targeted at low-income clients, with calls for such lenders to reassess their responsibilities within the community.
Reviews
John Kiernan from WalletHub rated the First Premier Bank MasterCard 1 out of 5 stars in April 2018, highlighting excessive fees, minimal credit limits, and steep annual percentage rates as significant disadvantages for most consumers.
Awards
- Recipient of two Gold Stevie Awards in 2023: Contact Center of the Year and Front-Line Customer Service Team of the Year
- Earned the Bronze Stevie Award for Customer Service Management Team of the Year in 2023
- Recognized by American Banker Magazine as one of the Best Banks to Work For consecutively from 2015 through 2022