This money is YELLING !!!!!

Discussion in 'Money Talk$' started by Salty, Feb 10, 2011.

  1. Salty

    Salty
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    Credit card had a 79.9% APR from First Premier Bank

    I just got a letter from them today to open an account. The first thing I saw was the annual fee

    $175 per year!
    The APR was NOT listed

    I just called them - first thing "For English - press 1"

    I asked what the APR was - he said he needed to know what my zip and confirmation number was.

    I again asked what is the APR - he still refused
    I asked about 3 or 4 times more.
    I then asked what is the range of APR - took me another 3 times -
    I then told him I saw on the Internet that this Bank was charging up to 80% APR.
    Then he finally he told me the APR was as low as 15% and upwards to 60%
    I told him that his company was practicing unsound business practices. He wanted to know if I wanted to open an account. I told him I will give the card to my wife. She loves to shed credit cards!

    Moral of the story - do not open a credit account at this bank - read all the fine print

    BTW, there are many additional charges
     
  2. menageriekeeper

    menageriekeeper
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    You know, when I was a kid, there were laws limiting the amount the amount of interest a company could charge. What happened to those laws?
     
  3. just-want-peace

    just-want-peace
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    Probably the same as happened to our immigration laws!!:smilewinkgrin::BangHead::sleep:
     
  4. InTheLight

    InTheLight
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    Are you sure it was credit card companies? Or was it banks, department store credit, or auto loans? So far as I know, there has never been a limit on credit card interest rates.
     
  5. Earth Wind and Fire

    Earth Wind and Fire
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    The Clinton adm with good ole Bob "I work At Goldman Saks" Ruben & Larry "I almost bankrupted Harvard" Sommers got rid of them. Two players at the BO Administration strangely enough.
     
  6. Salty

    Salty
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    And the answer is:

     
  7. gb93433

    gb93433
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    That bank is in South Dakota right? It is legal there.
     
  8. Salty

    Salty
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    Yes, the return envelope is addressed to Sioux Falls, SD

    But I think they have to abide by laws of the states or commonwealths that they deal with - with residents in those states or commonwealths.
     
  9. gb93433

    gb93433
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    It is legal in SD. I would think that if you send your money to SD then the business must meet the laws of the state the business is in. I can't remember that business being in any other state.
     
  10. Joseph M. Smith

    Joseph M. Smith
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    I have found that almost any unsolicited offers for credit cards involve high fees and rates. Thanks to the do-not-call list, I do not get those calls any more, but I used to stifle credit card sellers by telling them I had a card that did something theirs did not: give to missions! They all had to agree that that was true.

    The Christian Community Credit Union Visa or MasterCard gives a percentage of its income to American Baptist International Ministries.
     
  11. billwald

    billwald
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    http://en.wikipedia.org/wiki/Usury

    Usury statutes in the United States
    Each U.S. state has its own statute which dictates how much interest can be charged before it is considered usurious or unlawful.
    If a lender charges above the lawful interest rate, a court will not allow the lender to sue to recover the debt because the interest rate was illegal anyway. In some states (such as New York) such loans are voided ab initio[33]
    However, there are separate rules applied to most banks. The U.S. Supreme Court held unanimously in the 1978 Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp. case that the National Banking Act of 1863 allowed nationally chartered banks to charge the legal rate of interest in their state regardless of the borrower's state of residence.[34] In 1980, because of inflation, Congress passed the Depository Institutions Deregulation and Monetary Control Act exempting federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits. This effectively overrode all state and local usury laws.[35][36] The 1968 Truth in Lending Act does not regulate rates, except in the cases of some mortgages, but it does require uniform or standardized disclosure of costs and charges.[37]
    In the 1996 Smiley v. Citibank case, the Supreme Court further limited states' power to regulate credit card fees, extending the reach of the Marquette decision. The court held that the word "interest" used in the 1863 banking law included fees, and, therefore, that states could not regulate fees.[38]
    Some members of Congress have tried to create a federal usury statute that would limit the maximum allowable interest rate, but the measures have not progressed. In July, 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act, was signed into law by President Obama. The act provides for a Consumer Financial Protection Agency to regulate some credit practices, but does not have an interest rate limit.[39]
     

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