Newt Gingrich’s dubious claim of a ‘normal’ no-interest charge account at Tiffany
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We checked with credit-card experts. They said Gingrich’s comments made little sense.
“It doesn’t sound plausible to me,” said Ben Woolsey, director of marketing and consumer research at CreditCards.com. “Store credit cards almost never carry these kinds of terms, and it is highly unlikely for an exclusive retailer like Tiffany’s.”
Some department stores, such as Sears, might offer a few months of “same as cash” credit for buying major appliances. But Woolsey said a store like Tiffany is not going to offer zero-interest credit for purchases of jewelry, given the type of clientele it attracts. “Maybe with Zales, but not with Tiffany’s,” he said.
John Ulzheimer, president of consumer education at SmartCredit.com, said Gingrich’s comments made sense only “if he had some sort of no-interest grace period. You can't revolve a balance and not pay interest unless there is a zero percent interest rate. Carrying a balance of up to $500,000 and not paying interest is anything but ‘normal.’ ”
However, he added that Tiffany “isn't your normal retailer, and upscale retailers are notorious for cutting special deals with VIPs like entertainers, athletes, and political figures.”
We queried Gingrich’s spokesman, Rick Tyler, for further explanation but as usual did not get a response.
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http://www.washingtonpost.com/blogs/fact-checker/post/newt-gingrichs-dubious-claim-of-a-normal-no-interest-charge-account-at-tiffany/2011/05/23/AFGPJ69G_blog.html