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DanG
Administrator
Posts: 7050
Registered: 6/30/2004
Location: SW FL
Member Is Offline
Points: 145951
Mood: Stunned Amazement
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Credit card's newest trick: 79.9 percent interest
| Quote From Source: | It's no mistake. This credit card's interest rate is 79.9 percent.
The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It's a strategy other subprime card issuers could start adopting to get around the new rules.
Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card's credit line.
In a recent mailing for a preapproved card, First Premier lowers fees to just that limit -- $75 in the first year for a credit line of $300. But the new law doesn't set a cap on interest rates. Hence the 79.9 APR, up from the previous 9.9 percent.
| | Click source url to view entire story. |
http://finance.yahoo.com/new..._VXik3yelN0fNdF?x=0&.v=4
damn shame we no longer Tar n Feather
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FatalWishes
Administrator
Posts: 7498
Registered: 6/24/2004
Location: Fort Worth Texas
Member Is Offline
Points: 144751
Mood: Aging Cynic
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I'm so glad I don't have any credit cards. Well I have one but its a company card, and I don't worry about that.
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shakespear
Beginner
Posts: 16
Registered: 11/29/2009
Member Is Offline
Points: 160
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I'm glad I CAN pay my one (and only) credit card. What I do now is that I use it as little as possible and pay with cash. The bank interest rate is close to ZERO anyway. This way these crooks will make less money  |
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thedood
Member
Posts: 401
Registered: 3/4/2008
Location: Anchorage
Member Is Offline
Points: 6245
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I don't use one anymore. I don't really have any need for one anyways, which is what they don't want. 
"The rain it raineth every day, and every night also -- week in and week out, from the rising of the sun to the going down of the same, there is nothing but rain, rain, rain, 'The windows of heaven are opened up.' Pluvius, grieved at some earth-giving wrong, weeps as if he never would dry up." - Overland Press (Olympia, WA), December 1861 |
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posted on 12/18/2009 at 09:47
