Are You Willing to Pay 80% Interest on Your Credit Card???

@LadyMarissa (12148)
United States
December 28, 2009 10:48am CST
http://www.huffingtonpost.com/2009/12/17/799-percent-interest-cred_n_396191.html Neither am I!!! BEWARE!!!!!! First Premier credit card charges 79.9% interests on their cards. They have been sending out letters to people with little to no credit for the last 2-3 weeks. They guarantee you a credit card. When you get your card, you have a $250.00 limit on the card. The fees they charge to it total $256.00. So, BEFORE you've even used your card, you OVER your credit limit. The credit card laws will be changing the first of February & if you agree to this card now, you will be locked in when the laws change. So, BEWARE & DON'T fall for this scam!!! JUST SAY NO!!! I don't know if the new laws in February will really protect us. I think the ONLY way to be protected is to NOT have a credit card at all. Yes, it affects our ability to buy a new home, car or whatever. I do know if enough people don't have a credit card, then that will change too. Houses will still need to be sold, cars will still need to be sold. Our ability to buy these items will change so we can still get them. If you take this card, you can be paying $20 month in interest on the minimum balance. So, are you willing to pay 79.9% interest just so you can boast that you have a credit card???
3 people like this
13 responses
• United States
28 Dec 09
That makes me want to puke, period. I didn't even think that was legal to charge that type of interest, how disgusting. Those places need to be put out of business for good. I'm in a bind right now, been out of work for months and can't find a darn thing at all, so my credit cards are behind for 2 months, coming on 3. I'm completely sick to my stomach and at my age, I don't know what the heck I'm going to do without a credit card. I even need one to keep my Paypal account I think, as I sell small stuff on Ebay, plus I'm doing some writing on Textbroker for extra money just to get through, and they pay through Paypal too. Ohhhhh, woe is me right now, but just the thought of those people scamming all the poor folks out there makes me very apprehensive. I'd rather be without for sure.
@LadyMarissa (12148)
• United States
28 Dec 09
I'm not sure about PayPal requiring a credit card. I get paid through PayPal & just have a debit card. I've never sold anything on eBay, I've only bought there. I also don't take my money out of PayPal. I usually just let it build up until I want to buy something online. Then I can buy guilt free as it's not coming out of my checking account. I paid for my computer protection software with money I had earned on myLot. At that time, my checking account didn't have enough to cover it. It's NOT legal to charge that kind of interest rate, but they found a loophole. They are just trying to make every dollar they can before the new Consumer Protection laws go into affect the first of February. Other credit card companies have been sending out new contracts for their holders to sign in hopes that they can enforce those contracts after the new rules become permanent. This particular credit card was created simply to dupe those who cannot afford it most. Then when their holders cannot pay them back, they'll be crying we need help. Personally, I would rather see ALL credit card debt dismissed than to loan another bank money to keep them floating so they can rip us off again!!!
1 person likes this
29 Dec 09
You will be shocked to hear that here in England there is no leagl limit on interest they can charge what they like. I think that is so unfair!
@ronnyb (6113)
• Jamaica
28 Dec 09
That is so sad thatthese credit card people can be so unscrupulous in their dealings .I mean it is as if they want o make a million dollars of profit on just one card ,why do they have to charge so much .Based on what you are saying you will be in debt before actually using the card wow.They need soem sort of regulation to ensure that these credit card companies dont get away with this anymore .Like you said it may affect our credit rating but not having a credit rating is better than having a bad credit rating
2 people like this
@LadyMarissa (12148)
• United States
28 Dec 09
UNSCRUPULOUS is the right words for the bastids!!! There is a regulation going into effect in about 33 days. That's why this company is pushing their cards now. The letter even says that they can no longer offer the guaranteed card after February 1. That is true because it will be ILLEGAL then. Actually, I think it is illegal now, but they've found a way to skirt ALL the rules in place now & it appears nobody is willing to go after them because they will have to STOP in about 1 month. So, MY way to counteract them is to put the word out that, if you sign up with First Premier, you will be paying 79.9% interest rates & since it's a new contract, you will be locked in at that rate after the new law protecting us goes into affect. They also targeted people they know are desperate for money around the holidays. Personally, I think this should be as illegal, if not more so, as people who don't pay their bills. They are in effect setting up people they KNOW can't afford their card to fail & then whine when they fail. Citibank did this years ago, made billions of dollars & then got a Federal loan saying they were broke. BULLCHIT!!!
@stephcjh (38473)
• United States
29 Dec 09
Absolutely not. That is outragious. I do have credit cards and I do use them. I try not to charge anything on them that I cannot pay right back to them. I hate paying interest on credit cards.
1 person likes this
@LadyMarissa (12148)
• United States
29 Dec 09
HEYYYYYYYYY STEPH!!! Long time NO see...Where ya been???? WELCOME HOME!!! I got caught up in the credit card trap years ago. Once I finally got out of it, I promised myself I'd NEVER go back!!! I use cash now. If I can't pay cash, I don't need it!!! I've learned that what I want & what I need is usually 2 different things!!! Interest can eat you alive even at 15-20%. I can only imagine how hard it would be to get out from under 79.9% interest!!! These people are preying on the group of people that get excited when they see the words "guaranteed acceptance" & don't read the "screw you" clause in the fine print. This is SO WRONG on soooo many levels!!!
@dragon54u (31636)
• United States
29 Dec 09
We used to have usury laws that would have made that illegal. I agree that the best way is to have no credit cards. I usually use my card for everything I can then pay it off completely each month because I make 2% cash back on it. But lately I've begun using my debit card again instead. I don't know why, I just feel as if using the credit card isn't wise anymore, even though I pay it off completely every month. I have a very bad feeling about the economy this coming year.
1 person likes this
@LadyMarissa (12148)
• United States
29 Dec 09
Most credit card companies are now giving negative ratings to customers that pay off their balance every month as that makes them NO money. So, you've got bad credit if you use your card, you get bad credit if you don't use your card, & you get bad credit if you use it & pay it off. What a crock!!! This interest rate would have been illegal a couple of months back. However, since they are targeting the poor, nobody cares & those being affected don't have the money to sue. The response above you said his friend is suing & his lawyer is telling him he will most likely lose. I hope the lawyer is WRONG!!! As of February 1, there is supposed to be new protections for new applicants making the contract clearer & written so we can understand what we're agreeing to. I have serious doubts about that!!! Credit card companies have recently been sending out new contract agreements in hopes of hooking old customers into new agreements that won't be covered by the new laws. The only thing I know for sure is any credit card holder is getting ready to be screwed!!!
• United States
29 Dec 09
I don't own a credit card at the moment. If I ever did my mom would probably help e on what is best and how to do this and that about it. So, I'm pretty sure I woudn't fall for any scam because I know whats the right thing and whats not pretty mcuh.
1 person likes this
@LadyMarissa (12148)
• United States
29 Dec 09
Then you are very blessed!!!
• United States
29 Dec 09
My friend fell for this bank's trick. his card had 500$ dollar limit and the writting was so small you couldn't tell if it was 7.9% or 79% and he didn't get it clearified. he now filed a lawsuit agianst the bank for going agianst their regulations but his lawyer said his chances are slim because the bank never really put a NUMBER limit on their interest charge. DONT FALL FOR THIS.
1 person likes this
@LadyMarissa (12148)
• United States
29 Dec 09
They depend on the people who don't call up to verify the small print. They also depend on the fact that a large majority of these people won't have the money to hire a lawyer in order to sue. GOOD FOR YOUR FRIEND!!! I hope he doesn't give in & keeps the suit going!!!
@mtdewgurl74 (18151)
• United States
29 Dec 09
That is silly and highway robbery..how can they get away with stuff like that? I am sure glad I stay away from credit cards altogether.
1 person likes this
@LadyMarissa (12148)
• United States
29 Dec 09
They have found some freaking loophole & the NEW laws will be going into affect in about a month so NOBODY cares. Anyway, it's NOT affecting anybody that's considered important!!!
@cutepenguin (6431)
• Canada
29 Dec 09
Wow. Just wow. I feel really badly for people who will get excited about this "opportunity" and not realize about the fees and interest. I don't think that this is ethical at all.
1 person likes this
@LadyMarissa (12148)
• United States
29 Dec 09
I know it is NOT ethical!!! They are preying on people who are desperate; & even if they read the small print, they probably wouldn't understand it. It's written in legaleze that few will understand!!!
@gabs8513 (48686)
• United Kingdom
28 Dec 09
Well I certainly would not be willing to pay that much no way And how can they do that sort of thing and get away with it I have not heard of this Card but thanks for the Warning LadyM
1 person likes this
@LadyMarissa (12148)
• United States
28 Dec 09
This is a new card that was unveiled on December 18 (a week before Christmas) & sent into neighborhoods that are known to be poor. The first person that didn't read ALL the fine print called & was immediately approved for a credit card. They call their neighbor & says...guess what. I was just approved for the First Premier credit card & you know I don't have any credit. So, the neighbor pulls their letter out of the trash & calls the number. BOOM they got their credit card. And the cycle goes on!!! Now, these people have NOT used their card, they get their bill & owe $256.00 & are over their credit limit. That means there is an "over the limit fee" tacked onto their card. Without EVER using the card they are making payments PLUS $20.00 a month in interest is being added back to the account. The minimum payment due is $25.00. The "over the limit fee" is $25.00 PLUS the $20.00 in interest. They're paying on their bill but when they get the next bill, they owe $276.00 & the cycle continues!!! Now they can't use their card because they are over their limit. These are families that couldn't afford food to begin with & a carrot was dangled in front of their nose. Their only mistake was jumping for the carrot. It should be ILLEGAL to dangle the carrot before hungry people!!! Yet, it is NOT.
@carolbee (16230)
• United States
29 Dec 09
There's no way I would own a credit card that charges almost 80% interest. This should be against the law and the company closed. To milk the public who can't afford a credit card and take advantage of this situation is what I call rape. My choice would be to save as much as possible and pay cash for everything except big items such as a car or home. We use one credit card each month that gives us free airline miles. We pay it in full each month so there is never an interest fee. Takes about a year and we end up with a free airline ticket round trip. I use it to travel to visit our daughter. It's a voucher and if it expires, it can be extended for another year for a total cost of $50.00. We do pay a yearly fee to have the card but can't remember the exact amount. It's very reasonable. My vote is to shut down the company that charges this high amount of interest.
1 person likes this
@SHAMRACK (8576)
• India
29 Dec 09
Dear friend, That would be something more than avaiiing a loan. May be it is really a risky matter who do have limitations in expenditure. Moreover I hope it tastes something like a luxury product in market. I hope more and more people those aware are sure to avoid it. May be it would be better to avoid. But do they give any other concessions or services with that card with his high interest. I hope may be they would give other services with this card.
@LadyMarissa (12148)
• United States
29 Dec 09
NO, there are NO services offered with this card....ONLY an increasing bill every month.
@CharRay7 (1549)
• United States
29 Dec 09
credit card - photo of globe sitting on top of credit card
Hi Marissa, I am very familiar with this First Premier credit card. I wasn't drawn into it, but my 26 year old son was. He couldn't get approved by any credit card company because of his credit history and needed a credit card so he could lease a car when he went out of town. He thought he'd be smart and when that first bill came, he would pay the balance off and he would then be free to use the card. Well, you know how that goes, he never paid it off and ended up paying monthly payments month after month. That was last year and I don't know if he is still paying on it or not since he moved out since then. I think it stinks and they use people that have no credit history and technically abuse them. But as long as people will pay for it, they will continue to use people like that to make money. Happy MyLotting! Char
1 person likes this
@LadyMarissa (12148)
• United States
29 Dec 09
OMG Char...I can see how easily it would be for him to be drawn in. In large letters is reads "GUARANTEED ACCEPTANCE". The trap I'm sure was in tiny letters & it might as well be written in Latin for the ease of being able to read & understand it. Fortunately, come February 1, the laws will be changing to help protect new applicants. Unfortunately, it won't help those who already have the card.
@benny128 (3615)
28 Dec 09
to be honest in this day and age having a credit card is nothing to boast about. I have had a credit card in my younger days and now I have been without a credit card for about 7 years. I think its better to boast that you don't have a credit card, as I have always believed in if you ain't got the money you can't afford to buy something. happy holidays and don't give those credit card companies anymore of your hard earned money.
1 person likes this
@LadyMarissa (12148)
• United States
28 Dec 09
I agree Benny!!! I worked 3 jobs & paid off my last credit card about 6 years ago. The stores are always asking me to take one of their credit cards & I have to decline!!! At my lowest point, I was $27,000 in debt & drowning. YES, it was irresponsible on my part, but it was soooo easy to do. I needed a birthday present & had no cash, I could still get it & NOT look cheap!!! Normally, I don't care what others think of me, but there were certain times, that I was goaded into using that card. Now I'm PROUD to say I don't (& WON'T) have a credit card. I use my debit card now & when the money is gone, I STOP!!! My bank has given me a $1,000 line of credit, but I NEVER use it. I was told I'd NEVER get auto insurance if I didn't have a credit card. I've changed companies since my last credit card & I pay about $5 a month more than when I had my card. That is LESS than interest on ANY credit card out there. I work HARD for my money & REFUSE to just give it away anymore!!! Citibank was the one that screwed me royally. They would call up with an interesting offer saying you can cancel whenever you want. When I was getting close to my credit limit I'd call to cancel. They said we can;t cancel it for you, but call this number to get it canceled. I called the other number & it would say my billing had been canceled & the next month I'd find out it hadn't. Once I reached my limit & I attempted to make a needed purchase, they would decline the transaction, yet they still added the amount they were supposed to cancel. No matter who i talked to, I couldn't get that charge stopped. Of course, once over my credit limit, they began charging "over the limit fees" & I was NO longer using the card. It was their own charges that were running up my card...charges they NEVER would STOP & I didn't know how to force them to STOP!!! That is what upset me so much when MY tax dollar was used to bail out Citibank. I felt as though they had raped me 3 times!!!