Posted on 10/19/2009 6:26:46 PM PDT by Jet Jaguar
"The first thing they do is laugh. They think it is one of the most ridiculous things out there." Gordon Hageman is talking about a credit card offer that just came in the mail, an offer he could hardly believe.
"I think they are trying to take advantage of me. I think that's what's going on right now with the economy, maybe just trying to see what they can get away with," says Hageman.
And this card comes with an interest rate you won't believe. Not 20 or 30 percent, not even 50 or 60 percent, the Mastercard offer from Premium Bank in South Dakota, 79.9 percent.
"My first thought was it was a mistake so I called the 800 number on the back of the offer and gave them the offer code and verified my information and sure enough they verified it at 79.9 percent," says Hageman.
"Gosh, I hope nobody would do that. I hope nobody would say I'm going to sign up for this card without even looking at the interest rate," says San Diego State University Marketing Professor Michael Belch.
But there's nothing in the letter that tells you the interest rate. For that, you have to read the fine print.
Belch says, "I think you're beginning to border on deception there."
San Diego State Marketing Professor Michael Belch says card offers like this are usually targeted at people struggling with their credit, the card comes with a 300 dollar limit and a 75 dollar annual fee.
"Anyone looking to rebuild their credit probably going to end up worse shape that probably before they got this card," says Belch.
Vinny “The Knife” is impressed.
I sure would hate to see his credit for him to get that.
Surely Lord Obozo wouldn’t let this happen in his Amerika.
same bunch you might see walking the streets with a cell phone to their ear...phone doesn't work, and neither does the "card"......
“I think you’re beginning to border on deception there.”
Paging Captain Obvious, white courtesy phone for Captain Obvious.
You’d be surprised. They’ll send these out to anyone they think is desperate.
Banks and their predatory business practices are the reason for our economic problems.
It must be the “new” government credit card being issued by the White House.
It must be the “new” government credit card being issued by the White House.
Do you really believe your statement, or did you forget to /sarc. after your statement?
For the credit-worth deadbeat
South Dakota doesn’t have a usury law...
and now you know why Citibank and others set up operations there.
“Do you really believe your statement, or did you forget to /sarc. after your statement?”
The govt forced banks to give a small number of home loans. They did not force the majority of home loans. Banks jumped in with both feet and took stated income (ie no proof) for mortgage applications. They encouraged buyers to borrow money and take loans the banks knew were bad for their customers.
The govt also didn’t force the $990 Billion in credit cards.
Large multi-national banks are in bed with Obama and the globalist movement.
“and now you know why Citibank and others set up operations there.”
You mean banks like Citi aren’t ethical?
Probably sent to Rent-to-own customer lists.
Must have been Bank of America, they’re scum. :)
Kind of like some of those “rent to own” places, you could save up the cash to purchase outright in a couple of months.
You just know that it's is someone that kicks dogs and cats when he thinks nobody is watching.
You are making up your own history friend. That’s not the way it was. The Gov’t under the guise of CRA held the banks by their balls with threat to squeeze REAL HARD if the banks didn’t comply with the wishes of the Community Organizations such as ACORN. There were other such community organizations as well.
Pure and simple the government ultimately is/was responsible for the mess. It’s called extortion.
The banks were told the rules by the Community Organizations, and the government told them they had to have the numbers within the so called red lined districts controlled by the community organizations if they wanted to grow and profit.
Rather simplistic, but that’s the way it was, and the community organizers, and the government are still playing by those same rules.
Or if his credit is in the toilet THAT BAD, see if he can get a few more of them,max them out, then file for bankruptcy.I don`t know who the bad guy would be there.
I know many people who bought 5 “investment” houses with zero down on any of them. When the market tanks they walked away.
NO CRA there my friend.
Worse than that, he’ll try getting your grandmother to sign that card application. They do it every single day.
“I know many people who bought 5 “investment” houses with zero down on any of them.”
You do eh.
Ever read this?
http://findarticles.com/p/articles/mi_m1282/is_n25_v45/ai_14779796
LOL!
79% or your kneecaps
Did it hve a picture of “The Chosen One” on it?
depends on the state. I believe Delaware has no usuray limit. In VA where I do business it is 38%, although we never go that high.
Just wait till you meet our collection department, Vincent “Knuckles” delToro and Giuseppi “Kneecaps” Schwartz. They are very effective.
Yes I do, this kind of ‘investing’ was rampant here in Florida. The lenders, brokers, real estate people make a KILLING.
All of these folks had decent credit and a job. They didn’t have any money to put down. They couldn’t afford the mortgages long term.
The banks loaned the money knowing the value would continue to increase only it didn’t.
Capital One used to have a card that you had to put money on before you could use it. The only value was convenience, for ordering by phone and the like. You wouldn’t use it in public, as it screamed “loser!”
They’re still there. In the Bible.
I read the story and had a completely different take for some reason. The card has a $300 limit and is offered to people who have bad credit but are deemed to be credit worthy. If you had lost a job, lost a house, etc. and were getting back on your feet, this card could help you build your credit back up. Pay your $75 annual fee, put $300 a month on it and pay it off each month. It has a price and purpose. Spending beyond your means is not the purpose.
I would agree though, anyone who would get a card with a $300 limit, essentially pocket money nowadays, max it out and pay the 79% interest should be removed from the gene pool.
Running up big credit card balances and paying 20% interest is only marginally more intelligent than this offer.
REPEALED BY THE SENATORS FROM BANK OF AMERICA - CARPER AND BIDEN. BANK OF AMERICA WROTE THE BILL AND THE TWO LOYAL EMPLOYEES GOT IT PASSED. AMERICA SCREWED AGAIN.
“All of these folks had decent credit and a job. They didn’t have any money to put down. They couldn’t afford the mortgages long term.
The banks loaned the money knowing the value would continue to increase only it didn’t.”
I’ve heard it said that “It takes two to tango”
Those folks didn’t have the down payment, but had decent credit, and income, the banks loaned to them, but it’s totally the banks fault they couldn’t make the payments!?
If they didn’t have the money to put down, why did they take the risk of up to five homes as your original post stated?
There’s something wrong with this picture.
I see shared opportunism here, thus shared responsibility for a failure that should never have been had there not been government pressures on the banks to make such loans. Doesn’t really matter the pressure to loan was on the banks by government for specifically minorities, or “Po Folk” living inner city in allegedly “red-lined” areas when the pressure is on, it’s on everybody.
Trickle-down economics Liberal style if you will.
Never said it was totally the banks fault. It was their money though.
It sure wasn’t CRA on these loans, it was greed on both parties.
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