Kathy Kristof: Personal Finance Columnist Gets Hit With 703.8% Rate On Credit Card

[Me.]

“Consumer reporters were all crowing about a 79.99% rate credit card that was launched in response to credit reform a few months ago–collectively horrified that a law designed to cut rates and eliminate sneaky fees was inspiring increasingly abusive bank behavior.

I thought that was about as bad as it gets until I took a close look at the statement for my new Macy’s card, which I had opened with “instant credit” while Christmas shopping. It made that 79% card look like a bargain.

Department Stores National Bank, which issues the card, charges a “minimum interest charge.” On my average daily balance of $3.41, that minimum charge worked out to “an actual annual percentage rate” of 703.80%. (Part of the impact of last year’s credit reform is that the issuer had to disclose that shocker on the statement, while also noting that the card’s normal APR is 24.5%.)

Such are sneaky new fees that are now springing up in response to the Credit Card Accountability, Responsibility and Disclosure Act passed last May, said Bill Hardekopf, president of LowCards.com, a rate-shopping web site.”

http://moneywatch.bnet.com/saving-money/blog/devil-details/credit-reform-and-my-new-7038-card/1355/?tag=col1;blog-river

[Me.]

1. K

[crazyjoe]

2. thanks obama

these banks have teams of lawyers who find loopholes in these new laws designed to "protect us" from credit card companies.
it is legal, and there is nothing we can do about it

[hobbit709]

3. Any store card is designed for max charges.

If you're going to have a credit card, get a real one instead of a store card.