What kind of creditor charges 96% interest????

[PaysonHVAC]

I'd swear these guys were some sort of legalized LOAN SHARKS!!!

I already posted the credit offer on youtube, so just look at this and tell me what you think!


http://www.youtube.com/watch?v=Xwtm0cm207g

[lolson]

well i think i might take a $5,000,000 loan and file for bankruptcy

[Tech Support]

Worst part about this is there are actually people out there that this is the only way they can get a loan for any amount. :(

Reminds me a lot of the Check into cash type loan businesses.

[ckone180]

I think it is illegal to have that kind of interest rate. Here in NC we have laws that a supposed to protect the consumers, cap at 32.99% for credit cards. That is extremely high, but not quite 96% high. Someone should report these people!

[ARPA]

Indian reservation here has those vehicle tiltle for cash loans, and you keep your car, but it is a monthly loan at 150% interest.

I know because one of my techs got hung up with them..

[PaysonHVAC]

I think it is illegal to have that kind of interest rate. Here in NC we have laws that a supposed to protect the consumers, cap at 32.99% for credit cards. That is extremely high, but not quite 96% high. Someone should report these people!
That's why I put it on youtube! PLus I wanted to know what other people thought. That was defenitely a new one on me!


One company I hate is HSBC. Them bastards uped my rate when i missed a payment or two by a matter of two days.

here's the BAD part about them. Say they are due on the 16th. If I go to pay them online on the 14th, it will BE LATE! They say it takes THREE FACKIN DAYS to post, from the time you go online and pay it!!!
So you either get a $39 late fee, or pay the $15 RUSH PAYMENT fee to make it post the same day.

For some reason I forgot about it a few times and payed it to where it was never more than a week late. And they charge me the $39, plus some other hidden fees, jask my balance up, and have kept my rate in the default amount!

For some reason I never through large amounts at the card to just pay it off, but I need to. Kind of the attitude the tall guy on the TV show "Rules of Engagement" when his wife wants to pay extra and he says "NOPE!" rips up the check and says "they will get their min payment of $15.00 and not a penny more!"

And to make it worse, them a-holes keep sending me more credit card offers but don't say form who. So I look into it to see what the rate is (for a balance transfer) and find out it is really HSBC.
Then they started sending me NEW credit cards to sign and activate.
So I shred those.
Then last week out of nowhere they send me a NEW card to replace my existing card and they doubled the limit.

How about lowering my rate you a$$holes???!! :confused::mad:

Sorry, had to rant there! I hate them guys! They keep trying to trick me because they are making lots of coin on me!







Indian reservation here has those vehicle tiltle for cash loans, and you keep your car, but it is a monthly loan at 150% interest.

I know because one of my techs got hung up with them..
Seriously, if you paied their MINIMUM payments you would still go in the hole!
You would have to pay that back like really really soon!

[coordinatesales]

Worlds worst credit card:

https://www.cfcapply.com/classic1mc/fbd-terms.htm



http://www.thetaoofmakingmoney.com/2007/08/31/486.html

I often wonder about the irony of subprime lending - whether it’s made available through mortgage or through credit cards or through any other source of credit. I mean, people with bad credit are the very people who should be staying away from subprime borrowing. These people are already in the subprime category because of financial troubles and then there are these stupid (and very likely, unaffordable) subprime products targeted at them - which have the potential to throw them deeper down the financial hole.
Here is one such stupid subprime product - the Continental Finance MasterCard (https://www.cfcapply.com/classic1mc/fbd-terms.htm). It’s hard to believe that this piece of plastic comes with an initial credit limit of just $53 after a long list of fees!
Below are some of the amazing rates and fees that go along with this card.
Account setup fee: $99
Program participation fee: $89
Annual fee: $49
Account maintenance fee: $120 (charged @ $10/month)
Purchase APR: 19.92%
Authorized user fee: $30 (great! seems like $53 credit is a bit too much for a single person to handle)
Credit limit increase fee: $25 (and you don’t even have to ask for it!)
Each Credit Limit increase will be $100.00, subject to a maximum Credit Limit of $2,000.00. Each increase will appear on your Account no later than one (1) month after you have qualified for such increase. At the time of each Credit Limit increase, a $25.00 Credit Limit Increase Fee, which is a FINANCE CHARGE, will be charged to your Account.
You need to call these people and ask them to stop; otherwise, they are automatically going to increase the limit by $100 each time and charge you the $25 fee.
Internet payment fee: $4 for each authorized internet payment. I just don’t get this - why are people with bad credit charged for paying their bills online? .. probably to make sure that they don’t start paying their bills automatically or something?And, here is how the $53 initial credit limit appears:
Your initial Credit Limit will be $300.00 and you agree to pay the following fees, which will be billed to your Account and will appear on your first monthly Billing Statement: a one-time Account Processing Fee of $99.00, a one-time Program Participation Fee of $89.00, a monthly Account Maintenance Fee of $10.00 and an Annual Fee of $49.00. Your available credit after these charges will be $53.00 at Card issuance.




I agree that people with bad credit pose the risk of potential losses for the credit issuing company, but this a bit too much for a credit line worth just $300. This is where the irony strikes me - if you make it difficult for people to pay back what they borrow, it’s only going to increase the chances that they will never pay back what they borrowed. Isn’t there a risk assigned to this perspective? If it’s so much risk then don’t issue credit cards to people with bad credit (I have similar thoughts with regards to subprime mortgage - it’s a self-inflicted disaster on part of both, lenders and borrowers). Just offer secured credit cards and lend against a collateral.
By the way, there is another not-so-obvious trap hidden in such credit cards for people with bad credit. If you apply for a particularly horrible “bad credit” credit card and start building your credit history with this card, then some time down the line, when you think you have built sufficient credit and no longer need this horrible card, you are going to face a problem - your credit history is going to take a hit if you close this account. And, if you don’t close it down, the annual fees are going to create a leak in your pocket for quite some time to come.
So much for the cost of bad credit and so much for people with bad credit wanting a credit card (which creates the demand for such products in the first place).

[smokin68]

I wonder if that is an off-shore credit company, where they aren't governed by our state/federal laws, like the casinos.

[Shophound]

For some reason I never through large amounts at the card to just pay it off, but I need to. Kind of the attitude the tall guy on the TV show "Rules of Engagement" when his wife wants to pay extra and he says "NOPE!" rips up the check and says "they will get their min payment of $15.00 and not a penny more!"



The tall guy must really suck at math.

The minimum payment has only one purpose. For the credit card company to make a killing off of you in interest. If you can find a copy, get "Everyday Math for Dummies"...I think the author's last name is Seiter (the guy who won a pile of dough on Jeopardy back in the nineties), it has well written sections on personal finance. Very good stuff regarding credit cards and what a ripoff the minimum payment system really is.

[PaysonHVAC]

Worlds worst credit card:

https://www.cfcapply.com/classic1mc/fbd-terms.htm



http://www.thetaoofmakingmoney.com/2007/08/31/486.html


Wow. That one is MUCH WORSE!

That's caleld "bait and switch". Because that mere 19% interest from them is MUCH WORSE than the 96% one once you add in all the monthly and annual fees, plus the $200 setup fee!



I wonder how often some of your 401k investments could be going to companies like that which extend credit like that? The capital has to come from somewhere. Damn, I'd like a return on my investments to equal what people with those credit cards have to pay in return!

If it wasn't such a HIGH RISK investment(because 50% of the suckers who get them cards are surely going to default!)m that would be some awesome return!

[2hot2coolme]

That's funny, I just open a letter from "Quickclick Loans" and they have that same BS. 96% interest and it says I'm pre-qualified for a $3500 loan. Payments for 24 months 332.42...do the math. :rolleyes:

[tinner73]

those credit cards with the $hitty rates are for people with $hitty credit scores. pay your bills on time........every time.

[coordinatesales]

I wrote about the CC I mentioned above to my senator. Below is the response I got. The people who are taking out these kinds of loans/cc's don't 'need' a loan. They 'need' some financial counseling. If their credit is that bad, it's time to start paying cash for a while until they learn to live within their means. These companies are like drug dealers. They are offering something nobody needs but some people want and it's not good for anybody but the dealer.





Thank you for contacting me about credit card reform and curbing abusive practices by credit card companies. It is good to hear from you, and I greatly apologize for the delay in my response.

I believe Congress can play a role in stopping credit card companies from taking advantage of consumers. Abusive practices are unfairly penalizing consumers and permeating the culture of debt in the United States. The Senate has held hearings on the credit card industry, and several different pieces of legislation have been introduced to help solve the problem of abusive credit card practices. Please be assured, I will carefully consider any measure that comes before the Senate and I will be sure to keep your concerns in mind.

There are several reform measures I would like to see implemented. First, credit card companies should not be able to charge duplicative fees and other payment penalties. The credit card companies already accrue interest on the outstanding balance and I do not believe they should be able to "double charge." Second, all charges and interest rates should be plainly stated. Cost-changing schemes should be clearly labeled and understandable for consumers to make informed payment plans. Third, credit card companies should not be permitted to retroactively raise interest rates. Fourth, I believe there should be a usury limit placed on credit card interest rates and would consider supporting legislation toward this end.

I spend most of my time in Congress offering amendments to strike spending we cannot afford. Just as I believe Congress should live within its means, I believe it is in the best interest of individuals to live within their means and avoid carrying a balance on a credit card. Nevertheless, I do believe the credit card companies need more strict regulation.

Again, thank you for contacting me about this issue. As I stated, I will continue to study current legislation and I will keep your comments in mind. Best wishes!

[PaysonHVAC]

Wow good job man.

Somethings needs to be done.

When I get crazy offers, I like to send it right back to them with some sort of witty comment like "WTF? Are you serious???"

I only wish I could see into that cubicle when that employee opens that piece of mail!


Speaking of that... those AOL CD's they would mail to me constantly. I'd break them into 100 pieces, maybe even add some extra trash for good measure, and mail it back to them a-holes with a note about being annoyed with their TRASH in my mail box! :D