2009-12-18 — ml-implode.com
Here’s something you don’t see every day: A credit card with a $75 dollar annual fee, a $300 limit, a $29 penalty for being late or over limit… and an interest rate of 79.9 percent? Welcome to First Premier Bank, a sub-prime credit card issuer.
First Premier is just following the new regulations found in the Credit Card Reform Bill passed by Congress and signed by our President this past year. Apparently, Congress set out to curb the abuse that has become all-too-common in the credit card industry… you know, like exorbitant fees and interest rates from 20-40%… so they asked the banking lobby to come up with something acceptable and this is the result. So, there should be no one surprised when other credit card issuers follow suit as expected.
1 More Thing at 12:17 2009-12-19 said:Of course this is ridiculous. Moreover, First Premier is a predatotory credit card company that thrives on people who have "bad credit". In reality, you end up with worse credit when they are done with you. Besides the outrageous interest rate - this company has been known to play other dirty tricks --- like intentionally making you late - so you have you have to pay a late fee, (you mail your payment to arrive on time THE DAY it is due------- it arrives at the mail stop via the postal service at 1:00 pm, you find out your payment was due by 9:00 AM on the day it's due.) So you end up in this spiral of late fees. Minimal payments of $25 goes to cover the $29 late fee that you now have just incurred --- and the extra $4 goes to the principal ----- ohhhhh....but now you are given credit for paying $4 towards principal ---- yippie -- only problem - your miminum payment was $25...now you are -$21 short -----You get dinged now for not sending in the full minimal payment. This is just one of the many games that get played by Premier. The worst is when you use the card - 250 credit limit - spend $100 it will drop your credit score 50-80 points. Permalink
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