clayinaustin
12-18-2009, 12:04 AM
Credit card's newest trick: 79.9 percent interest (http://finance.yahoo.com/news/Credit-cards-newest-trick-799-apf-3359014390.html?x=0&.v=4)
It's no mistake. This credit card's interest rate is 79.9 percent. :eek:
The bloated APR is how First Premier Bank (http://www.firstpremier.com/), a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It's a strategy other subprime card issuers could start adopting to get around the new rules.
Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card's credit line.
It's no mistake. This credit card's interest rate is 79.9 percent. :eek:
The bloated APR is how First Premier Bank (http://www.firstpremier.com/), a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It's a strategy other subprime card issuers could start adopting to get around the new rules.
Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card's credit line.