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Two Credit Cards That Should Be Banned
Predatory Credit Cards
People remember the payday loan outfits that preyed on those most in need before laws were passed to curb the excess and outrageous fees and penalties applied to loans consisting of a few hundred dollars that basically put the borrowers into a a vicious cycle of just trying to pay the interest, let alone any principle on the loan. Some borrowers were looking at well above 500% APR rates.
Attention has been focused on these predatory lenders but I wonder why certain credit card offers to consumers haven’t drawn the same amount of attention. I’m talking specifically about “First Premier Bank” (was sent a card in the mail with my name in smudged ink) and “Credit One” which tries to play cute by using almost the same logo style as “Capital One.”
The consumer is offered a credit line of between $300 to approximately $700.00. Out of that your paying $75.00 for an annual membership fee and $99.00 dollars annually after the first year with “Credit One” and $175.00 for the first year with “First Premier Bank” and $49.00 dollars there after annually. After the first year with “First Premier Bank” your also hit with a $14.50 monthly service fee which translates into another $174.00 a month. For this privlidge “First Premier Bank” Charges you a 36% interest rate.
It gets worse. Much worse. Read the complaints about these two cards these two links. First Premier Bank and Credit One Bank The stories I have read are just mind blowing. I’m in Indiana and wonder why the Indiana Attorney General hasn't stepped in or the federal government. I'm a fan of investigative journalism and would think this would be a ripe story.
Books to help you understand how credit companies work.
These two “credit” card companies have been sending out these offers for years. In this economy people grasp at straws to try and rebuild their credit and latch on to these “poison” type of companies.
What's the solution? An Exposure through a newspaper or a State or Federal investigation. If somehow these companies are operating legal then the laws need to be changed. The question is why haven’t these companies been accountable and stopped with their predatory practices?