Wow 79.9% Interest rate

**Nana2two** · 12-17-2009, 11:23 PM

Wow anyone want a creditcard. Read this
http://finance.yahoo.com/news/Credit....html?x=0&.v=4

**sinopa27** · 12-17-2009, 11:49 PM

wow!! The first of many outrageous fees and apr when the law changes in a couple of months.

**Luckybustert** · 12-18-2009, 12:24 AM

I understand that banks need to make money, but I think this is going a bit too far. And as usual, someone has already found a way to circumvent the laws that are supposed to protect consumers.

**Greebo** · 12-18-2009, 05:39 AM

The best way to win with Credit Cards?

Don't play with them!

**scrappinmom30** · 12-18-2009, 07:06 AM

The rich get richer, and the poor get poorer!

**Greebo** · 12-18-2009, 09:02 AM

Originally Posted by scrappinmom30

The rich get richer, and the poor get poorer!

Very true. There is, however, a way out of both groups.

Stop doing what the people in your group do and start doing what the people in the other group do and you'll join em.

**mombottoo** · 12-18-2009, 09:36 AM

My dad & his companion saddled themselves with this card and my sister was furious when she found out. They have let every credit card account they had go defunct, so they thought they were pulling a fast one on us by getting this card without our knowledge. Now, they are paying monthly just to pay back all the fees assciated with the card...no charges, just fees...unbelievable!

**littleplum** · 12-18-2009, 09:39 AM

Holy Hamster Nuggest, Batman!

That's still not as bad at the truth in lending papers we got at work yesterday. An employee got himself one of those payday loans. 411.xx% I want to just slap him. Our boss will lend the guys money and do a payroll deduction at no charge, and he's borrowing $250 at 411%. Only he didn't pay it back, so now they want to garnish his wages.

We got a good giggle at what they sent over to garnish his wages. Just a form letter saying "Please send us $650". No court order or anything. Yeah, right, you dummies!

**suebeehoney** · 12-18-2009, 01:08 PM

littleplum -

If the employee wants to get out of those payday loans, tell him to make sure they are operating legally in his state. If they are not, he is not required by law to repay the loan. He can file a complaint with the state's attorney general (or other governing official that handles these matters), and they will usually send a letter off to the lender advising them to cease and desist lending in the state until they obtain a state license or fall into compliance with the state law regarding payday lending. (Note, this does not apply to all states - there are a few that have really consumer-UNfriendly laws on payday lending.)

Whether he is morally required to or not is another story, and is up to his discretion. I have always advised anyone using payday lenders to decide whether they can live with the fact that they borrowed and didn't repay the money. If their state law says they don't have to repay legally, then the moral issue is up to the individual.

(I used to be a mod on a website that helps people get out of payday loans - not by not paying them, but by fighting fire with fire when it comes to the illegal ones - and there are hundreds of companies out there on the internet lending illegally every day. When it comes to the legal, law-abiding ones, most of them offer repayment plans. Only an illegal one would be so ignorant as to send a letter and think they can garnish wages that way.)

**NcsstyBrdsIngnty** · 12-18-2009, 02:03 PM

I had a similar card a couple years ago. Before I got it I went into a dealership to look at Hondas and when they ran my credit they noted that I had no debt, no revolving lines of credit, no credit cards, a couple of paid medicals, and some previous paid accounts (car loan and CC) from when I was 18 - but that based on having no available credit and essentially no credit score, I would be charged 16% interest on a car loan.

I applied for, and paid the $275 of a $300 credit limit on an Orchard card and it was honestly one of the better decisions I have ever made. Two months later I received a Capital one with a $1500 credit limit and I reached 650 on my credit score.

I considered the monthly fee of $12, the online payment of $4, and the initial $275 in fees as payment I needed to pay someone to up my credit score. It paid off, in my opinion, and when I bought my house I dumped them as soon as my home posted on my credit report.

I'm just saying these cards aren't all bad - I'm thankful there was a card like that out there for someone like me. Having said that, I can tell you that of the two years or so that I had that card I learned quickly that you never call customer service to pay by phone. That cost me $14.95 a month to do, and somehow they would magically loose the payment. Lucky for me Momma taught me to write down Authorization Codes in my check book register and I could catch them on it.

Just a thought, anyway.

**littleplum** · 12-18-2009, 02:52 PM

Originally Posted by suebeehoney

littleplum -

If the employee wants to get out of those payday loans, tell him to make sure they are operating legally in his state. If they are not, he is not required by law to repay the loan. He can file a complaint with the state's attorney general (or other governing official that handles these matters), and they will usually send a letter off to the lender advising them to cease and desist lending in the state until they obtain a state license or fall into compliance with the state law regarding payday lending. (Note, this does not apply to all states - there are a few that have really consumer-UNfriendly laws on payday lending.)

Whether he is morally required to or not is another story, and is up to his discretion. I have always advised anyone using payday lenders to decide whether they can live with the fact that they borrowed and didn't repay the money. If their state law says they don't have to repay legally, then the moral issue is up to the individual.

(I used to be a mod on a website that helps people get out of payday loans - not by not paying them, but by fighting fire with fire when it comes to the illegal ones - and there are hundreds of companies out there on the internet lending illegally every day. When it comes to the legal, law-abiding ones, most of them offer repayment plans. Only an illegal one would be so ignorant as to send a letter and think they can garnish wages that way.)

I agree they are morons. However, the TIL agreement sent over says that the employee agrees to repay the loan by cash, by post-dated check, or by wage garnishment.

The employee isn't likely to file a complaint with anyone. They are legally operated. It's not an internet payday lender. Most of our guys don't own computers and don't know how to use them. These are hourly wage truck drivers, not brain surgeons, as the boss-man says.

We aren't going to garnish his wages without a court order, though. We were just ROTFL over the complete lack of professionalism. The employee's name was hand-written onto a form letter with bubbly little girl handwriting.

**littleplum** · 12-18-2009, 02:57 PM

Originally Posted by NcsstyBrdsIngnty

I had a similar card a couple years ago. Before I got it I went into a dealership to look at Hondas and when they ran my credit they noted that I had no debt, no revolving lines of credit, no credit cards, a couple of paid medicals, and some previous paid accounts (car loan and CC) from when I was 18 - but that based on having no available credit and essentially no credit score, I would be charged 16% interest on a car loan.

I applied for, and paid the $275 of a $300 credit limit on an Orchard card and it was honestly one of the better decisions I have ever made. Two months later I received a Capital one with a $1500 credit limit and I reached 650 on my credit score.

I considered the monthly fee of $12, the online payment of $4, and the initial $275 in fees as payment I needed to pay someone to up my credit score. It paid off, in my opinion, and when I bought my house I dumped them as soon as my home posted on my credit report.

I'm just saying these cards aren't all bad - I'm thankful there was a card like that out there for someone like me. Having said that, I can tell you that of the two years or so that I had that card I learned quickly that you never call customer service to pay by phone. That cost me $14.95 a month to do, and somehow they would magically loose the payment. Lucky for me Momma taught me to write down Authorization Codes in my check book register and I could catch them on it.

Just a thought, anyway.

But that was really not your only alternative. Every credit union or bank I've done business with has offered a secured credit card, line or credit, or loan, and the fees and (effective) interest rates are MUCH lower.

**shoiji** · 12-18-2009, 05:03 PM

UHHHHH, how did someone manage to forget to also put a cap on interest rates in this new law? Can someone say DUH!

Here we go again with predatory lending. WWWHHHHEEEEEE

**NikoSan999** · 12-18-2009, 06:11 PM

While that is not a "normal" credit card I don't think we've seen what the interest rates will be topped out at. 79%..no but it wouldn't surprise me that 29.9% couldn't become the normal and the default 50% or better.

**NcsstyBrdsIngnty** · 12-23-2009, 02:56 PM

Originally Posted by littleplum

But that was really not your only alternative. Every credit union or bank I've done business with has offered a secured credit card, line or credit, or loan, and the fees and (effective) interest rates are MUCH lower.

You are correct, that wasn't my only alternative. However, from sitting on forums that dealt with fico scores I knew that two CCs with increasing lines of credit and less than 8-10% debt to limit was my best option for bumping up my score. A loan (personal or car) by itself wouldn't have given me the same jump in score, so I opted for this card, the cap one, and a payment line that came from a local tanning salon (crazy isn't it?). My source for this comparison was from using base models that came with monthly credit score monitoring services, where you can model "what if's" that show how to increase your score.

I am not claiming this is the only way, but the card did serve it's purpose and I went from a mid500 to a low 700 over the course of a year. I am not, whatsoever, a proponent of a card that will charge 79%, nor am I proponent of not paying of the balance in full every month. I am, however, a proponent of second chances and this is how I recieved mine.