First Premier Bank

First Premier Bank is a privately held bank headquartered in Sioux Falls, South Dakota, United States. Founded in 1986, it operates primarily as a consumer-credit institution and is particularly associated with issuing Mastercard-branded credit cards to applicants who may have low credit scores, limited credit histories, or difficulty qualifying for mainstream unsecured credit products. The bank’s business model is built around serving a higher-risk segment of the U.S. credit-card market. Its products have historically been marketed as an opportunity for customers to establish or rebuild credit, rather than as low-cost borrowing products for prime borrowers. Accounts may provide reporting to credit bureaus and access to revolving credit, but the associated pricing and fees can be substantially higher than those of cards offered to customers with stronger credit profiles. First Premier has therefore occupied a controversial position: supporters characterize its products as a possible entry point or “lifeline” for consumers excluded from conventional credit, while critics argue that high interest rates and fees can impose severe costs on financially vulnerable borrowers. The bank issues Mastercard-branded cards in the United States. A typical customer relationship has historically been relatively short, with many cardholders moving to another issuer after improving their credit profile or finding more favorable terms. This makes credit access and customer acquisition central to the brand’s proposition, while also exposing the institution to regulatory scrutiny over disclosures, marketing, affordability, and pricing. First Premier became nationally discussed in connection with the pricing of some of its credit cards. In 2010, reporting cited a product carrying an annual interest rate of 79.9 percent alongside a low credit limit. Senator Bernie Sanders used the example when criticizing what he regarded as abusive pricing for consumers with poor credit. The bank also reached a 2007 settlement with the New York attorney general concerning allegations that its credit-card marketing practices were deceptive. Under the settlement, it paid $4.5 million. The institution has also been involved in a short-lived legal dispute with CardHub.com. In 2014, First Premier sued the website over its publication of card rates and terms and the availability of customer reviews. The action was withdrawn several months later. The episode illustrated the tension between issuers and comparison platforms that make pricing information and user feedback more accessible. First Premier remains a U.S.-focused consumer-finance brand rather than a broadly diversified international banking group. In addition to its credit-card activity, it provides banking and related financial services, although the public identity of the brand is most strongly tied to its subprime and credit-rebuilding card portfolio. The bank has received workplace and customer-service recognition, including American Banker’s Best Banks to Work For listings from 2015 through 2022 and several 2023 Stevie Awards for contact-center and customer-service performance.

First Premier Bank was established in 1986 in South Dakota and developed as a consumer-focused banking institution. Its most distinctive role in the U.S. financial system has been the issuance of Mastercard-branded credit cards to people who may have low credit scores or limited access to conventional credit. Rather than competing primarily for affluent or prime borrowers, the bank built its identity around a higher-risk segment in which access to a credit line can be valuable but underwriting, servicing, losses, and regulatory exposure are also greater. The bank’s credit-card proposition has generally combined a modest credit limit with pricing and fees designed for applicants who might not qualify elsewhere. The institution has presented this model as a way for customers to obtain credit and potentially improve their credit standing. In practice, customers who successfully rebuild their credit may use the account for a limited period before transferring to a card with lower rates or more favorable conditions. This relatively short customer lifecycle has been described as characteristic of the bank’s business model. First Premier’s practices have generated sustained public criticism. In 2007, the New York attorney general alleged that the bank had used deceptive methods in marketing its credit cards. The matter was resolved through a settlement under which the bank paid $4.5 million. The controversy placed the institution within wider debates over subprime credit-card marketing, the clarity of fee disclosures, and whether financially distressed consumers can meaningfully assess the cost of high-priced revolving credit. The bank attracted further attention in 2010 when a reported First Premier product carried an annual interest rate of 79.9 percent and a $300 limit. Senator Bernie Sanders cited the card while arguing that such pricing amounted to exploitation or loan sharking. The example became a prominent illustration of the trade-off at the center of First Premier’s market: a consumer may receive access to credit when other issuers decline the application, but the cost of that access may be extraordinarily high if balances are carried. In 2014, First Premier brought a lawsuit against CardHub.com, a comparison and personal-finance website. The bank objected to the site’s publication of card rates and terms and to its facility for customer reviews. The case was discontinued a few months after filing. Although short-lived, the dispute reflected the growing importance of online comparison tools, consumer reviews, and transparent presentation of credit-card pricing. The bank has been associated with T. Denny Sanford, who owned and controlled it, and Dana J. Dykhouse has been identified as a chief executive. Public recognition has not been limited to its lending activity: First Premier was included in American Banker’s Best Banks to Work For rankings from 2015 through 2022 and received three Stevie Awards in 2023 for contact-center and customer-service performance. First Premier’s continuing public profile is consequently shaped by two contrasting themes. It is a specialized provider of credit access for consumers underserved by mainstream issuers, and it is a frequent subject of criticism concerning the affordability and fairness of products sold to that same vulnerable population. Its principal market remains the United States, with the Mastercard credit-card business serving as the core expression of the brand.

• 2023

  Customer-service Stevie Awards

  [1]First Premier Banken.wikipedia.org

  The bank receives two Gold Stevie Awards and one Bronze Stevie Award recognizing contact-center and customer-service teams.

• 2014

  CardHub.com lawsuit is withdrawn

  [1]First Premier Banken.wikipedia.org

  First Premier files a case concerning online publication of card terms and customer reviews, then drops the suit several months later.

• 2010

  High-interest card becomes a national talking point

  [1]First Premier Banken.wikipedia.org

  A reported card with a 79.9 percent interest rate and a $300 limit is cited in congressional criticism of high-cost credit.

• 2007

  New York marketing-practices settlement

  [1]First Premier Banken.wikipedia.org

  First Premier resolves allegations concerning deceptive credit-card marketing and pays $4.5 million under the settlement.

• 1986

  First Premier Bank is founded

  [1]First Premier Banken.wikipedia.org

  The bank is established in South Dakota and later develops a strong specialization in consumer credit and credit cards.

A U.S. consumer-credit provider positioned around access to revolving credit for people who may not qualify for conventional prime credit cards. Its value proposition emphasizes credit access and credit-building potential, while its products have also attracted criticism for high interest rates and fees.

• Credit cards

  First Premier Bank Mastercard credit cards

  The bank’s best-known products are Mastercard-branded revolving credit cards issued in the United States. They are aimed at applicants with poor, damaged, or limited credit histories who may be rejected by prime-card issuers. The cards are positioned as an access and potential credit-building tool, but historically have included high interest rates, fees, and relatively low limits. Customers who improve their credit may later move to products with more favorable pricing.

• Banking

  Consumer banking services

  First Premier Bank is a South Dakota banking institution with consumer-finance operations. Public descriptions of the brand focus much more heavily on its credit-card issuance than on a broad retail-banking product catalog. Specific deposit, lending, or digital-banking products are not sufficiently documented in the supplied reference material.

• 2010

  Criticism of a 79.9 percent interest-rate card

  A reported First Premier card carrying a 79.9 percent annual interest rate and a $300 limit was condemned by Senator Bernie Sanders as an example of predatory or loan-shark-like pricing.

  Source

• 2007

  New York attorney general credit-card marketing case

  The New York attorney general alleged that First Premier had used deceptive practices to market its credit cards. The bank settled the matter and paid $4.5 million.

  Source

Read more

• 2014

  Lawsuit against CardHub.comOther

  Background

  CardHub.com displayed credit-card rates and terms and allowed customers to review cards, creating a dispute with the issuer over online presentation and commentary.

  Action taken

  First Premier filed a lawsuit against the website.

  Aftermath

  The lawsuit was dropped several months after it was filed.

  Source

1. 1First Premier Banken.wikipedia.org
2. 2First Premier Bank official websitefirstpremier.com