79.9% Credit Card Interest Rate? You Can't Make This Up.... LINK

[Blackhatjack]

And this is just one of many loopholes in the new credit card bill due to become effective in Feb 2010. We'll be lucky if they don't end up owning our first born children after this ....

http://www.huffingtonpost.com/2009/12/17/799-percent-interest-cred_n_396191.html

"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."

MORE

[wtbymark]

1. so glad I haven't had a credit card since 2002

cash and carry only

[Blackhatjack]

Stop and think for a minute... small businesses and huge medical bills...

Wall Street took trillions of dollars and cut lending to small businesses, effectively leaving them to either close or use the only available credit --credit cards.

Same with people who suffered a major medical crisis. No one is lending, so credit cards were the only alternative to obtain the medical care they needed.

Just 2 examples of those with no real alternative.

[andym]

2. Perhaps their greed will finally create enough anger to CAP credit card rates nt.

[SoCalDem]

3. Here's an oddity.. Discover LOWERED our rate to 1.9 %

unsolicited..and it's not a promotional rate.:shrug:
we don't carry a balance, but with interest like that, I might use the card more :)

[virgogal]

4. Damn,you beat me. I have a 3.99% and thought I was just grand,

:-)

[Warpy]

5. Folks who have been through foreclosure and bankruptcy

are going to pay it as a way of re establishing credit worthiness.

It's cheaper than the 300% those payday loan places charge.

And yes, it's robbery.

[Blackhatjack]

6. A similar tactic may be used by Health Insurance Companies with the Senate Bill in place...

Not being subject to state regulation because of the anti-trust exemption, the health insurance companies may move to the state with the least regulation and sell across state lines at tremendously increased premium rates.

When they all raise rates there won't be much anyone can do.

[Blackhatjack]

7. Hey this is the 10th Largest Issuer of Mastercards and Visas in the country, 3.5 mil customers LINK

Imagine what 3.5 million customers paying 79.9% APR could bring in! I can see the commercial for Mastercard -- GOOD TIMES! PRICELESS!

http://www.huffingtonpost.com/2009/12/17/799-percent-interest-cred_n_396191.html

"According to First Premier's Web site, the credit cards are issued by its sister organization Premier Bankcard. The company, based in Sioux Falls, S.D., says Premier Bankcard is the 10th largest issuer of MasterCard and Visa cards in the country, with more than 3.5 million customers."

[NYC_SKP]

8. I have credit cards, I HAVE to have them, but I pay each one off in full, every month.

I feel for people with credit card debt.

I was there (thanks, ex-wife) and I'll never go there again.

If you can't afford it, don't buy it.

If you have to use a credit card, be sure you have the cash to pay off the bill in full.

:patriot: