Reply
Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
0

Issuer of 79.9% Interest Rate Card Defends Its Product

Now that Premier came out with their 79.9% card, congress is considering getting involved to set top rates. Say they set a 40% top limit (number totally made up by me)...will the rest of the cards jump up to meet the new maximum? We all saw what happened when they instituted the most recent credit card act.

 

http://finance.yahoo.com/banking-budgeting/article/108839/issuer-of-79.9-interest-rate-credit-card-d... 

 

From the CEO of Premier: Beacom from Premier says the astronomic interest rate will only affect revolvers -- people who do not pay their entire balances off each month. "People pay it off every month, they pay no interest," he adds.Those getting the offer have a choice, Beacom says."If everything is fully disclosed, if they want it fine, if they don't want it fine," he adds."People should be able to make that decision rather than the government cutting off access and saying they know best."

Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007
0

Re: Issuer of 79.9% Interest Rate Card Defends Its Product


LynetteM wrote:

Now that Premier came out with their 79.9% card, congress is considering getting involved to set top rates. Say they set a 40% top limit (number totally made up by me)...will the rest of the cards jump up to meet the new maximum? We all saw what happened when they instituted the most recent credit card act.


Sure they would and I wish they would if that would prevent anual fees and minimum usage fees.

09/12/2013 FICO: EQ: 772 EX:813 TU:752
Established Contributor
woopah
Posts: 721
Registered: ‎03-15-2008
0

Re: Issuer of 79.9% Interest Rate Card Defends Its Product

On a legal standpoint, I don't see anything wrong with it.  I think it's insane and crazy and I personally would never get a credit card with that high of an interest rate, but if it's disclosed from day one and someone chooses to get it, and then doesn't pay in full, I think it's that person's choice and I don't see a problem with the bank doing that. 

 

On the other hand if they say the interest rate is going to be 10% and then it's 79.9%, then that's a problem.  Additionally if the credit card company doesn't say there's an annual fee, and then charges one, there's another problem.  

 

4/16/09: TU: 775, EQ: 805
2/11/09: TU: 773, EQ: 790, EX:790
11/16/08: TU: 773, EQ: 785, EX: 780
Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)
Community Leader
Senior Contributor
laz98
Posts: 4,334
Registered: ‎09-06-2008
0

Re: Issuer of 79.9% Interest Rate Card Defends Its Product


woopah wrote:

On a legal standpoint, I don't see anything wrong with it.  I think it's insane and crazy and I personally would never get a credit card with that high of an interest rate, but if it's disclosed from day one and someone chooses to get it, and then doesn't pay in full, I think it's that person's choice and I don't see a problem with the bank doing that. 

 

On the other hand if they say the interest rate is going to be 10% and then it's 79.9%, then that's a problem.  Additionally if the credit card company doesn't say there's an annual fee, and then charges one, there's another problem.  

 


i have to agree.  i think it's nuts, but that's why we are supposed to make smart choices about our finances.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 716. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}