Height of Sleaze?? Credit Card Company Offers 79.99% APR! (2 Viewers)

superchuck500

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Gordon Hageman couldn’t believe the credit card offer he got in the mail.

"My first thought, it was a mistake," Hageman said.

The wine distributor called the number on the offer, gave them the offer code and verified his information. Sure enough, it was right: the pre-approved credit card came with a 79.9 percent APR.

Yes, 79.9 percent.
http://www.nbcsandiego.com/around-town/shopping/No-Youre-Reading-That-Right-64173667.html

This is a sub sub sub prime credit card issuer - they're pretty bad. I guess the pure capitalists would argue that the rate is published and the bank is taking a big risk on these people so they should charge a high rate. I guess I can see that side of it, but when you look at the macro of what the bank does it's pretty sleazy. They issue these cards with very low limits, like $300 - this limits their exposure rather significantly. Then they take in very high interest gains, particularly because the limits are so low that even with a full credit limit default ($300) plus penalties and interest, the amounts owed are low enough that most people can eventually pay it off to get it off their credit report.

But wow. I'm pretty sure that this bank is in South Dakota, which apparently has no usary laws whatsoever.
 
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superchuck500

superchuck500

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TheBigEasy99

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Nobody sticks a gun to anybody's head and makes them accept the credit card offer. The credit card companies are evil, anyone with half a brain knows this. Get in bed with them at your own risk. Just don't act surprised when you end up with clamidia.
 

Jeff Miller

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I really cannot put into word the extent the banking/credit card insustry has damanged people and the country as a whole. By the time i'm 50 i will be completely credit debt free. And i will never, never use one again.

you want to change the economic landscape of the United States, stop using credit cards.
 

muzzy

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Which are worse: credit card companies or insurance companies?:scratch:
 
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wamland

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I really cannot put into word the extent the banking/credit card insustry has damanged people and the country as a whole. By the time i'm 50 i will be completely credit debt free. And i will never, never use one again.

you want to change the economic landscape of the United States, stop using credit cards.

This
 

Jeff Miller

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Nobody sticks a gun to anybody's head and makes them accept the credit card offer. The credit card companies are evil, anyone with half a brain knows this. Get in bed with them at your own risk. Just don't act surprised when you end up with clamidia.

i was very frugal when it came what cards i would use. I never agreed to a card that high i higher apr than 10%. but every single card in the last 2 years has upped their fees, changed their grace periods from 30 days to 25, increased their minium payment amounts, increased the apr to 22%, and reduced the cerdit lines.

when the economy tanked and congress passed some new regulation, the credit card companies changed the agreements (that wonderful fine print) to make more off whatever outanding balances there were instead of counting on interest from future purchases.

Its a scam. its legal mafia, nothign more.
 

jpcdolphan

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I have a major problem with deceptive practices, of which the average credit card issuer is a master.

However, if they are flat out stating that the APR is 79.99% and someone is still dumb enough to go for it, at a certain point we've just got to shrug our shoulders and just write it off as some people just needing a diploma from the School of Hard Knocks.
 

KiwiSaint

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If you pay the card off every month, it doesn't matter if the APR is 4.99% or 79.99%. Credit cards have been demonized by many on this board, but no one makes a consumer apply for the card, put the card in their wallet or purse, use the card at Best Buy or McDonalds, etc. or carry an exhorbitant balance that they cannot pay off. Where is personal responsibility???
 

LafourcheSaint

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Why is it considered price gouging or profiteering in some instances but sound business practices in others? :scratch:

Jacking up the price of gasoline and bottled water after a hurricane to make a huge profit is taking advantage of people using things they need to survive. Jacking up the credit rates 80% for wine is taking advantage of idiots and should almost be encouraged.
 

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