Posted on 02/14/2010 3:58:43 AM PST by BIOCHEMKY
APR Shocks Many, but Issuer Says They Are Pricing for the Risk
If you have bad credit in the new era of credit card regulation, be prepared to pay -- dearly -- for the privilege of using credit. That's the message underlying recent credit card offers that feature jaw-dropping interest rates of up to 79.9 percent.
The sky-high rates may be a sign of things to come in the market for so-called subprime credit cards as issuers who lend to the riskiest of borrowers try to figure out how to stay in business and comply with the new credit card reform law.
"We need to price our product based on the risk associated with this market and allow the customer to make the decision whether they want the product or not," according to a statement issued by Miles Beacom, CEO of Premier Bankcard, the South Dakota credit card marketer that mailed test offers in September and October featuring 79.9 percent and 59.9 percent annual percentage rates (APRs) on cards with $300 credit limits. Premier markets credit cards issued by First Premier Bank.
(Excerpt) Read more at finance.yahoo.com ...
No shit sherlock!
The big difference between you and I, and correct me if I'm wrong, is that I do not feel another idiotic law is what is needed to correct this issue.
Let the market handle it. Getting the government involved has only ever made things worse.
I thought there might be something wrong. I’ll try and find out what happened, because she was somewhat upset by it. I was wondering if perhaps a phishing scheme had gotten her. She was trying to do it on the internet, I think.
Where did I advocate a law or government?
I’m just sick of knee-jerk FR posters automatically supporting the banks when they are busy anally-raping us and when things go bad, they do it again with a bailout, all while paying out big bonuses off my dime.
The anti-thesis of free market is controlled market. Controlled markets create idiot policies like the one that has your panties in a wad.
Gee I wonder if mac daddy has invested any money in this company, sound like his kind of ripoff.
I fail to see how I advocate what you say. Bending over and greasing up you ass while you are being raped is also NOT a sane economic activity either.
Then what are you advocating? You obviously don't like the APR. So don't do business with them. I'm certainly not.
What more do you think should be done?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.