79.9 Percent Interest Rate: RIDICULOUS Credit Card Offer Sent To San Diego Man

NBC San Diego:

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.

Read the whole story: NBC San Diego

Comments

[Frank Fitton]

12:38 PM on 10/19/2009

I hope and pray that no one was stupid enough to sign up for this card without reading all the terms and conditions, but sadly I’m sure there is somebody out there that did. Even worse would be if there are actually people out there who are this desperate that they’d be willing to pay an almost 80 percent interest rate. In my opinion things like this should be illegal. These people are either trying to trick people or preying on people that are in a horrible situation. Either way that’s just ethically not right. They are following all the rules and regulations though at this point so I don’t think there is really anything that we can do about it. If there is someone willing to pay this kind of a price, I guess that’s the price you can charge them.

Check out my blog on this insane credit card offer at..... http://www.thedebtgazette.com/2009/10/credit-card-offer-79-percent-interest/

[ZombyDwulf]

11:21 PM on 10/18/2009

Sounds like a Banko de Amerikano offer to me

[brady61995]

10:32 PM on 10/18/2009

when the crredit card bill going into effect?

[JessWonderin]

03:39 PM on 10/18/2009

"Too big to FAIL" . . . most of these "bargain cards" are financed by Wells Fargo, BoA, Chase etc as "funding agency investors" . . . .

[mmgbizgirl]

11:25 AM on 10/18/2009

Proof of the anal-ripping of Americans.

[ZellaBee]

05:23 PM on 10/17/2009

time to rename the bank....First premier criminals.

[Susanne Freeborn]

02:32 PM on 10/17/2009

Interest rates are set under state law. South Dakota has not legally limited interest rates, so companies like First Premier Bank, Merrick, and Cross Country Bank are free to charge any interest rate that they wish to charge.

They market to people whose credit is less than stellar. I note that the photo showed that not only do they charge high interest but the annual charge for their card is $75. Apparently greed is still good in South Dakota. They aren't much concerned about the cost of healthcare either. Here's what one of their senators said when the Baucus bill passed out of the committee:

"I don't know how you can characterize anything as reform that raises premiums, raises health care costs, raises taxes and cuts Medicare for seniors," said Sen. John Thune, R-South Dakota.

Yeah, we're sure that he cares about costs to ordinary citizens. South Dakota, the new wild west.

[Stock market]

12:35 PM on 10/17/2009

Time 2 get 2 work Obama:

10% unemployment
1.4 trillion deficit
people broke, no more credit, no housing

hat tip to: http://tiny.cc/financenews

banks aren;t lending
bad earnings from BAC, Citi & GE
foreclosures at record highs

[anticapitalist1983]

12:45 AM on 10/17/2009

put up a poster in your neighborhood to show your displeasure with the financial crisis: http://www.scribd.com/doc/21140663/wallst

"wall street is at war with america"

it's time to stand up and say enough!

go to youtube and watch Elizabeth Warren's videos for more info on the reality of the situation we are in.

[steppenwolfsayshi]

12:39 AM on 10/17/2009

REDO!

In three months, the card holder would accrue about $105 on a $500 purchase.

So, I guess if the fees associated with the card were low, which they don't sound like they are, it could be used for emergencies actually.

The banks are being way too stingy. Someone with average credit shouldn't have to deal with this BS.

[SwingingFromCenter]

11:56 PM on 10/16/2009

The untold story, which would make this a non-story.

1) That APR, as clearly shown in the picture, is for CASH ADVANCES. Those are always higher. Much higher.

2) First Premier (and their other bottom feeding brethern Merrick and Cross Country Bank) prey on people with bad credit. The only way you get an offer from one of those guys is if you have a habit of never paying your bills, so their default rate is outrageous. Back when credit cards were usually 9%, they were 30%. Now that the good credit cards are 30%, First Premier has to raise their rates accordingly.

[PepperzMom]

03:28 PM on 10/17/2009

Likely wrong. The "s" before the cash advance is for PURCHASES.

There are numerous companies such as Premier who do not differentiate between advances and purchases for the interest rates for the "challenged".

[washlib]

04:59 PM on 10/16/2009

clearly cc companies have powerful lobbyists in washington to allow this incredible level of USURY.

US Govt should make a maximum allowed rate of financing, say 15%. That would mean, however, that those who cannot afford ccards...couldn't get them! Which is a good thing.

[steppenwolfsayshi]

03:08 PM on 10/16/2009

Oh my gosh!

For perspective I got my calculator out.
Let's say put $500 on the card.
In one month, you would accrue $399.50 in interest.
In two months, $718.70
In three months, $ 973.74
For a total bill of 1,473.74 in only 3 months!

And, of course, this doesn't include any other charges-I've noticed my card suddenly has finance charges and yearly APR charges and all sorts of other stuff it never had before.

Outrageous!

[washlib]

04:57 PM on 10/16/2009

i think you need to check your math. It's 79% APR (ANNUAL percentage rate..not monthly)

[steppenwolfsayshi]

11:37 PM on 10/16/2009

Oh. Hmmm. I pay my credit cards off each month. I honestly don't know how they work. ...now I will have to call them and ask...

[themodernleader]

04:40 AM on 10/16/2009

In this oasis of financial rule anything is possible. And everything that is achieved destroys the middle class while enriching finance.
Our President has given the go-ahead sign for the banking and other financial interests to finish the work that they are in, that is, exploit and subvert what is left of the American civilization. Soon a delegation of international interests will come knocking to begin instructing our leaders and managing our affairs that we clearly will not or can not address. What a disgraceful culmination of failed decisions and unaddressed events.
Only traitors and fools place an organization in the hands of competitors,opponents and erstwhile enemies, simply for the enrichment of the pockets of a few citizen despoilers.

[desertman]

12:16 PM on 10/16/2009

Don't buy what you don't understand. Don't pay for it if you can't afford it. It's not too complicated.

[einstein10]

12:35 PM on 10/16/2009

Obviously, you don't understand.

[Hnorc]

03:50 AM on 10/16/2009

Simple solution, do not get the card.

[RightWingMarine]

11:48 AM on 10/16/2009

that would be the logical solution but many on here believe the best solution is more govt intervention in our lives.

[desertman]

12:19 PM on 10/16/2009

Someone else should have the job of protecting you from your own stupidity. Nanny state logic.

[einstein10]

12:36 PM on 10/16/2009

Obviously, you don't understand.

[SwingingFromCenter]

11:57 PM on 10/16/2009

Oh I understand. Government needs to protect us from ourselves, because we're too stu.pid to think for ourselves, which is why we should never be held accountable for bad decision making.

You know, the same logic behind the distressed homeowner bailout.