More Banking Outrage: Credit Cards With 79.9% APR, Apply Now!

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posted on Feb, 11 2011 @ 10:29 AM
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Credit card had a 79.9% APR from First Premier Bank

Credit Card Had a 79.9% APR from First Premier Bank


At that same time, First Premier Bank launched a new credit card with the sky-high 79.9% rate.

The card proved popular with consumers, said First Premier Bankcard CEO Miles Beacom, but the performance was bad: "A lot of the people ran up the card, defaulted and went directly to charge off."

As a result, they dropped the rate to 59.9%. "We also tested it at 23%, 33%, 45%, but 59.9% is the one that shows the best performance and where the organization can market the product," he said.

Since then, nearly 700,000 people have signed up for the card -- and more than half of them carry a monthly balance.

And yes, that rate is completely legal. The Card Act, which was passed in late 2009 to protect consumers from predatory lenders, only prevents issuers from raising rates retroactively. Credit card issuers are free to charge whatever rate they want at the front end.


If you are like me, maybe you thought this type of credit card scheme was illegal. Well, it isn't. It is not only legal, but makes First Premeire a lot of money, because they are still actively trotting out new cards aimed at poor uncreditworthy prospects.

So we have people clamoring for a credit card, with a paltry limit of 300, and they are willing to pay almost 80% interest to have that privilege? And this is legal, nothing wrong with it according to our current laws.

If this doesn't tell us who is in charge, what does?

A couple things are disturbing in this. One is the credit mentality. Do you really need three hundred THAT BAD? What is worth buying for those outrageous interest rates? It galls me to think most Americans are still caught up in the credit scam.

Another point is that banks have the legal right to charge these fees. How come other industries are regulated, but banks can get away woith this? The article describes hundreds in fees, so the three hundred dollars is almost sliced down to a hundred by the time you can use it.

To me this is outrageous, yet according to the article they have no shortage of consumers who use their services.

And to read about their test cards, where they perfect the interest rate down to a mere 59.9, this is disturbing.

Can anyone think of a reason in which they would NEED such a dangerous credit card? It seems to me this is predatory, preying on really stupid people.




posted on Feb, 11 2011 @ 10:38 AM
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If some idiot is stupid enough to get that card he/she deserves the butt raping that will ensue. Just sayin...

MOTF!



posted on Feb, 11 2011 @ 10:39 AM
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It's like living day-to-day withdrawing $20 at a time from an ATM, and agreeing to the ATM's bank $2.00 surcharge - as well as YOUR OWN BANKS $1.75 fee..... they make it 'fair' because of the upfront notice.

In this case, they have pushed the meme that 'without credit' you cannot live...And since there are those who can't get a 'credit' card otherwise.... this is what they have to work with....

"You need to establish a credit record and work on you "score" ... they say .... then this is given as the only option which will allow you to do so starting right away....

These people aren't stupid... they are desperate.

Are we learning yet?
edit on 11-2-2011 by Maxmars because: (no reason given)



posted on Feb, 11 2011 @ 10:40 AM
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I always assumed that there were laws against loansharking. Used to hear about it a lot. This seems a lot like loan sharking.
edit on Fri, 11 Feb 2011 10:44:13 -0600 by hotbakedtater because: (no reason given)



posted on Feb, 11 2011 @ 10:44 AM
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I've been wondering.... it seems that any countries the transnational banking cartel owns all hate Muslim countries....do you think it's because of the Islamic prohibitions on usury?

All the "western" religions accepted the notion that the middleman should get rich holding onto other people's money, despite their "Holy" texts.... But Islam seems to hold dear to the notion that it is wrong..... (I tend to agree, generally speaking.)



posted on Feb, 11 2011 @ 10:47 AM
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Seems like there are many complaints against First Premiere Bank, when I googled First Premeire Bank, thousands showed up. Here are a few links to some ripoff type reports, and angry consumers.

www.consumeraffairs.com...

cageyconsumer.com...

www.epinions.com...
edit on Fri, 11 Feb 2011 10:47:44 -0600 by hotbakedtater because: (no reason given)



posted on Feb, 11 2011 @ 10:48 AM
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awhile ago, I decided to go cash only. What surprised me was the fact that several companies, like cable and such, really give you a hard time if you don't have a credit card even if you are willing to pay a year in advance.



posted on Feb, 11 2011 @ 10:51 AM
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reply to post by Maxmars
 


There are plenty of ways of getting "alternative credit". My credit score was in shambles and I still was able to get a home. A lot of loops to jump through but it was worth it in the end.

MOTF!



posted on Feb, 11 2011 @ 11:01 AM
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I went cash only about ten years ago. If I don't have the cash for some thing I don't buy it. I get offers in the mail all the time. They all are offering 0% APR for the first year and then 29.9% after that. My brother and I joke about it, because he's got all kinds of cards and when they raised his rates he went through the roof. I told him his best bet would be to cut them all up. We live in a predatory world. Those poor people that can't afford those cards are going need something next winter, when the government cuts off their LIHEAP. It seems to be open season on poor people.



posted on Feb, 11 2011 @ 01:15 PM
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Wow, I thought 19.99% that the Harley dealer offered me was outrageous. I guess that was low in comparison?

Luckily, some credit unions are still human. I got 7.9% on the Harley, and my credit card, and 4% getting paid back on my checking and savings/share accounts. $5 fees on overdraft transfers (instead of $35 like banks.), and I get to talk to the person that actually makes the loans, instead of sending it off to some headquarters.

That is some reasonable banking.

Envision Credit Union

Everyone probably has an institution like this in their town. Strive to do business locally with people you know and trust. It doesn't matter if it is banking, groceries, or real estate agents. Choose something homegrown!



posted on Feb, 11 2011 @ 06:02 PM
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I remember a while back, I got a job but didn't have a bank account and didn't have enough ID to get one.

I looked online and found a top up VISA card similar to the one's displayed here

While the use of the card enabled me to:
- pay wages into it
- use online
- pay on card

The downsides were the charges...

- pay wages into it = charge
- pay online = charge
- take money out from cash machine = £1.50 per transaction
- pay on card = charge

I had to go to the cash machine on 4 consecutive days and take £300 out to get the full £1,200 so it only charged me £6, otherwise I'd take £10 here, £20 there and before I knew it my charges were totaling stupid amounts.

These people pray on the vulnerable and often work out to cost more than loan sharks.

Here in the UK, one of the biggest lenders is Provident.


Representative example: £300 loan repayable over 52 weeks 52 weekly payments of £10.50 Rate of interest 82.0% p.a. fixed; Representative 272.2%APR Total Amount Payable is £546


That same company for a £300 loan is:

£300 @ 14 weeks - £420 1068.5%
£300 @ 23 weeks - £448. 50 545.2%
£300 @ 31 weeks - £465 365.1%

These companies make so much money on interest that they can pray on the vulnerable. They specifically target poor areas and yes I do agree, it should be banned or certainly regulated to an acceptable level.



posted on Feb, 11 2011 @ 06:23 PM
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Originally posted by Maxmars
I've been wondering.... it seems that any countries the transnational banking cartel owns all hate Muslim countries....do you think it's because of the Islamic prohibitions on usury?
All the "western" religions accepted the notion that the middleman should get rich holding onto other people's money, despite their "Holy" texts.... But Islam seems to hold dear to the notion that it is wrong..... (I tend to agree, generally speaking.)

Nobody loans money for free.
Muslims just dont call it a loan with interest, rather
it is called a purchase contract for a higher amount.
You buy the 20K car for 30k of payments.
Math is math even to a religious terrorist.





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