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No, You're Reading That Right 79.9 percent rate targets credit-challenged
nbc ^ | 10/17/09

Posted on 10/18/2009 7:18:23 AM PDT by FromLori

Gordon Hageman couldn’t believe the credit card offer he got in the mail.

"My first thought, it was a mistake," Hageman said. The wine distributor called the number on the offer, gave them the offer code and verified his information. Sure enough, it was right: the pre-approved credit card came with a 79.9 percent APR.

Yes, 79.9 percent.

(Excerpt) Read more at nbcsandiego.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: credit; creditcardrates; creditcards; debt; usury

1 posted on 10/18/2009 7:18:23 AM PDT by FromLori
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To: FromLori

And the difference between that bank and the Obamaloon administration is?


2 posted on 10/18/2009 7:20:05 AM PDT by Da Coyote
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To: FromLori

Lol...but sad that some people will take the “offer”. Might as well stick a gun in their backs.


3 posted on 10/18/2009 7:20:49 AM PDT by Dallas59 (No To O)
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To: FromLori

4 posted on 10/18/2009 7:20:53 AM PDT by blam
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To: blam

That number likely is the one time charge...say 10% of cash withdrawal...+ interest rate...


5 posted on 10/18/2009 7:22:50 AM PDT by Sacajaweau
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To: FromLori

The card company is just ahead of the curve, getting ready for the dollar crash coming under the leadership of the 0ne.....

In a few years, 79% on your credit card debt will seem like a good deal....


6 posted on 10/18/2009 7:23:13 AM PDT by machman
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To: FromLori

I wonder how many takers they get. I have clients coming out of bankuptcy who get offered way better (but still lousy—28% APR with a bunch of fees) deals than that.


7 posted on 10/18/2009 7:23:47 AM PDT by Huntress (Who the hell are you to tell me what's in my best interests?)
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To: FromLori
I had a woman come to me for help a couple years ago. She had a bill from her credit card company, "Premier," if IIRC, for a credit card account she had just opened. It was for $300 since she had lousy credit, and the first bill, before ever using the card to purchse anything, had 284 dollars in "fees" and "membership" charges. She was starting out with $16 credit available.

This kind of activity invites, no-- demands, regulation. These banks have brought upon themselves and deserve anything the Obamanoids do to them.

8 posted on 10/18/2009 7:24:51 AM PDT by hinckley buzzard (Truth--The liberal's Kryptonite)
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To: FromLori

The article states that the credit company is just finding ways to gouge the consumer.

Did I miss the gun to the head that comes when you open the mail? How about the invisible ink that hides that incredibly ridiculous rate?

If you accept that credit card, you’re a fool: a fool who signed on the dotted line and acknowledged the obligation to pay an assinine rate. And a fool and his money are soon parted...

So tired of the ‘victim’ whine on stuff like this. It’s right there in black and white. The only thing folks who accept this are victim of is their own stupidity.


9 posted on 10/18/2009 7:25:03 AM PDT by HGSW0904
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To: blam

This bank deserves to be boycotted for even offering such a card. Closing bank accounts and transferring out balances from them might send the message that we are not sheep.

This offer is completely outrageous. But instead of having government regulate it, just take current business away from it.

If depositors move to other institutions that would send a better message than any regulator could.


10 posted on 10/18/2009 7:25:15 AM PDT by LRoggy (Peter's Son's Business)
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To: blam

Banks that issue credit cards spent 100 million on politicians to get their way on everything.


11 posted on 10/18/2009 7:25:39 AM PDT by stephenjohnbanker (Pray for, and support our troops(heroes) !! And vote out the RINO's!!)
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To: FromLori

you could start a business, hire people, and pay their salaries with this card AND pay the interest and still come out ahead of the Porkulus job-creation fiasco!


12 posted on 10/18/2009 7:27:53 AM PDT by bigbob
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To: HGSW0904

Kind of like the people who bought the houses they couldn’t afford to pay for what worries me is how much the rest of us will have to pay for these kinds of offers on our own cards or forced through the government to bail out the banks then.


13 posted on 10/18/2009 7:28:34 AM PDT by FromLori (FromLori)
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To: hinckley buzzard
Bailout Helps Fuel a New Era of Wall Street Wealth


14 posted on 10/18/2009 7:29:10 AM PDT by blam
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To: FromLori

Use your debit card. If you don’t have the money, you don’t need the debt. Especially at that rate.

A credit card is not a status symbol.

A gold plated cell phone, encrusted with diamonds might be.


15 posted on 10/18/2009 7:29:41 AM PDT by Vendome (Don't take life so seriously... You'll never live through it.)
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To: FromLori
"Kind of like the people who bought the houses they couldn’t afford to pay for what worries me is how much the rest of us will have to pay for these kinds of offers on our own cards or forced through the government to bail out the banks then."

That's right Lori, me and you, the taxpayer.

The Middle-class is being destroyed.

16 posted on 10/18/2009 7:31:46 AM PDT by blam
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To: Vendome

I only use the cards that pay me cash when I pay them in full every month. I have 3 cards total and zero balance. I use them because they are convenient for gas, etc. Actually I use Discover for groceries lol because they have a 5% cash back thing going on so I have been stocking up paying the bill in full and I get money back for doing it. That is the only way I use credit cards period is by paying them in full each and every month and thus making money.


17 posted on 10/18/2009 7:32:48 AM PDT by FromLori (FromLori)
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To: blam

On purpose it makes me beyond furious the plan to wipe out the best hope of the world America’s middle class!


18 posted on 10/18/2009 7:34:11 AM PDT by FromLori (FromLori)
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To: FromLori

You're better off going to the local guys.

19 posted on 10/18/2009 7:38:18 AM PDT by ClearCase_guy (Play the Race Card -- lose the game.)
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To: blam; FromLori

“Dana Dykhouse, President and CEO of First Premier Bank”

Don’t know why he doesn’t just call it “First Premier Dykhouse”


20 posted on 10/18/2009 7:39:56 AM PDT by bigheadfred (NEGROMANCER!!! Run For Your LIVES!!!!)
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To: stephenjohnbanker
Banks that issue credit cards spent 100 million on politicians to get their way on everything.

Gotta pay for advertising too.

21 posted on 10/18/2009 7:42:52 AM PDT by raybbr (It's going to get a lot worse now that the anchor babies are voting!)
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To: ClearCase_guy

lol good point!


22 posted on 10/18/2009 7:43:21 AM PDT by FromLori (FromLori)
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To: FromLori

That’s it, exactly. And then their greed and ignorance creates drops in the housing market that hits every one of us. So many people are underwater — people who paid a fair market value, pay their mortgage or paid it off completely — and now are stuck.

Your home is an investment, and so many ‘good’ homeowners are hurting. It’s a risk you take when you buy, but the market was tainted. I think if we sit it out and get the gov’t turned around, we’ll be ok, but I feel for those in the meantime who are transferred or relocate for work and are stuck with a home they cannot unload. The foreclosure rate’s just going to keep on keeping on.


23 posted on 10/18/2009 7:43:59 AM PDT by HGSW0904
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To: FromLori
That is the only way I use credit cards period is by paying them in full each and every month and thus making money.

What's up with that? I have a bank issued Visa card that gives me one dollar every time I charge 25.00. Since I always pay the full amount each month it's just free money to me. I don't understand how they can profit from that.

24 posted on 10/18/2009 7:44:22 AM PDT by bkepley
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To: FromLori
The wine distributor called the number on the offer, gave them the offer code and verified his information.

This idiot called them up and verified for them that he responds to stupid solicitations and now is contact info will be shared with all the scammers.

This on par with replying to an Ambassador from Nigeria.

25 posted on 10/18/2009 7:45:50 AM PDT by Mark was here (The earth is bipolar. ---- "OBAMA: THE GREAT MISTAKE OF 2008")
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To: stephenjohnbanker

Mr. Dana Dykhouse, prsident of First Premier Bank, political donations go predominately to republicans.
Google “First Premier Bank Scams” to get an idea of what a SOB the business is. Every politican and political party should return contributions and write laws to provide full and clear disclosure regarding fees.


26 posted on 10/18/2009 7:46:50 AM PDT by BilLies
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To: blam
My 21-year-old daughter has a credit card from them. It was her first one and had a $300 limit. They have a $7 fee to pay the bill online and another service fee that's also $7, plus the interest rate - which is 18.99% I think.

They're so sleazy tho....instead of just increasing her limit, every month they send her a new card (the cardboard one) and tell her she's such a good customer, she gets to have TWO accounts with them - complete with an additional $14 in fees every month!

Mrs. Prince of Space

27 posted on 10/18/2009 7:50:27 AM PDT by Prince of Space (Don't use a big word when a diminutive one will do....)
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To: bkepley

I don’t know but I like it.


28 posted on 10/18/2009 7:50:39 AM PDT by FromLori (FromLori)
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To: blam

caveat emptor....let the buyer beware.


29 posted on 10/18/2009 7:51:08 AM PDT by mono
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To: FromLori
Sure enough, it was right: the pre-approved credit card came with a 79.9 percent APR.

Whew!

I'm so glad it wasn't 80%. I don't think I could afford 80%. ;)

30 posted on 10/18/2009 7:54:58 AM PDT by SnuffaBolshevik
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To: bkepley

They make 2 1/2 to three points on every purchase you make, billed to the retailers.


31 posted on 10/18/2009 7:56:09 AM PDT by stephenjohnbanker (Pray for, and support our troops(heroes) !! And vote out the RINO's!!)
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To: BilLies

Most Republicans voted for all the recent credit card legislation too.


32 posted on 10/18/2009 7:57:54 AM PDT by stephenjohnbanker (Pray for, and support our troops(heroes) !! And vote out the RINO's!!)
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To: LRoggy

This is probably a bank set up just to issue rip off credit cards. I doubt if they even have any retail depositers. Even if you pay the balance in full every month they still eat you alive with monthly and annual fees.


33 posted on 10/18/2009 7:58:16 AM PDT by mono
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To: LRoggy

One of my clients had his home loan through Countrywide which is now Bank of America. Had always paid his bill through Countrywide on-line with no special fees. Bank of America, however, charges $6.00 to pay on-line using their website. Wonder how many other fees they have added that nobody knows about.


34 posted on 10/18/2009 8:03:31 AM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: Grams A

I use BofA on an as needed basis and don’t pay any fees. What’s up with that?


35 posted on 10/18/2009 8:05:41 AM PDT by eyedigress
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To: eyedigress

The $6.00 per transaction fee seems to apply to just those whose Countrywide real estate loans were bought up by BofA. There is a separate log-in site apart from the one you use for credit cards or for real estate loans which originated through BofA. They also have a separate telephone number just for those whose Countrywide loans were transferred to BofA. My client also has a BofA credit card which we always paid monthly on line which does not have a transaction fee but we have now cancelled that credit card.


36 posted on 10/18/2009 8:18:01 AM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: stephenjohnbanker
Dear stephenjohnbanker,

The merchant who accepts the card pays fees to the payment processor, usually in the 2% - 3% range (higher for American Express), but these fees don't accrue to the bank or financial institution that issues the card.

Most of this money goes back to Visa, MasterCard, American Express, etc. The rest go to the merchant account payment processor. So, if I'm a merchant who accepts credit cards, I accept any Visa or MasterCard issued by any institution.

But when I run a credit card transaction, it's through my merchant account, and the credit card transactions are processed through my payment processor, which is with a company that does the credit card processing for me and makes sure that I get my money and puts it in my bank account. I pay my fees on each transaction (I might also pay monthly account fees, minimum transaction fees and other fees) to the payment processor company. So the 2.5% - 5% (the most frequently used card in my business is American Express, and their rates hurt) that I pay goes directly to the payment processing company. Then the payment processing company kicks back a chunk of that for “interchange fees” to Visa, MasterCard, American Express, etc.

Now, of course, any bank who issues cards can also serve as a payment processor, but banks don't get back the merchant transaction fees paid when the cards they've issued are used for purchase. The payment processors get the fees, and then the credit card companies (Visa, etc.) get their cut.


sitetest

37 posted on 10/18/2009 8:20:35 AM PDT by sitetest (If Roe is not overturned, no unborn child will ever be protected in law.)
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To: stephenjohnbanker
Banks that issue credit cards spent 100 million on politicians to get their way on everything.

There are people here and in the Republican party who call that "free market capitalism."

38 posted on 10/18/2009 8:33:40 AM PDT by Nephi ( Bush legacy: "I had to sacrifice free market principles to save the free market.")
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To: Grams A

I rarely use the card. My home was gobbled up by chase. If any company dares extend me credit then charge me for it they are bye bye. I pay enough for my home loan as is at 5.5


39 posted on 10/18/2009 8:40:14 AM PDT by eyedigress
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To: FromLori

Usery - has the word been deleted from Webster’s yet?
Is this really legal for a credit card company? Does anyone know?


40 posted on 10/18/2009 8:49:01 AM PDT by RebelTXRose
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To: RebelTXRose

Democrats got rid of usury hate to use this source but at least it lays out the truth on that issue

http://www.thenation.com/doc/20090622/greider/2


41 posted on 10/18/2009 8:53:33 AM PDT by FromLori (FromLori)
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To: RebelTXRose
First Premier Bank is based in South Dakota. No usury laws at all in South Dakota. The incredibly bank-favorable laws are why almost all credit cards are issued by bank subsidiaries based either in South Dakota or Delaware.
42 posted on 10/18/2009 9:06:31 AM PDT by MN Doc
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To: FromLori

Feakin’ amateurs!

Chase Bank charged me 225% APR for an overseas ATM withdrawl.


43 posted on 10/18/2009 9:06:48 AM PDT by utax
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To: utax

Thank the democrats for getting rid of usury!


44 posted on 10/18/2009 9:09:36 AM PDT by FromLori (FromLori)
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To: FromLori

If they really wanted to change credit card use, they would make it so that the CC companies couldnt send offers thru the mail. The only way to get a card is to apply via Phone to get a form, fill it out and mail it back.
How many credit card offers do you get. My credit isnt that great and I still atleast five a week. If I was a weaker person, I would get them and rack up more debt.
The Credit Card issuesers bear some of the blame for handing out cards to anyone with a pulse.


45 posted on 10/18/2009 10:14:30 AM PDT by Yorlik803 ( Better to die on your feet than live on your knees.)
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To: Yorlik803

Two actions you can take to stop receiving credit card offers are to visit a website and fill out a formal request: http://www.optoutprescreen.com, or make a phone call to 1-888-5-optout. This is an automated service that is supposed to be run by the main four credit bureaus, so it should stop all pre-screened mailings that come from any of the four bureaus.


46 posted on 10/18/2009 3:40:49 PM PDT by listenhillary (A "cult of personality" arises when a leader uses mass media creating idealized/heroic public image)
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