The Big Bad Wolf of Credit Cards

In The World of Credit There Are Many Predators… And Then There Is "FIRST PREMIER BANKCARD"

First Premier Bank in South Dakota has come out of the closet with a big-time credit card offer for anyone crazy enough to take it - a whopping 79.9% APR (annual percentage [interest] rate. The October, 2009 story unfolded in California when resident Gordon Hageman received an unsolicited credit card offer from First Premier Bank. When he discovered the 79.9% interest rate he quite naturally thought it was a mistake, a misprint. So he called the bank. He was shocked to find out the 79.9 % interest rate was indeed correct. It seems the state of South Dakota repealed the states usury law in 1981 in order to attract Citicorp to their state. Here is the South Dakota State Law on interest charges:

§ 54-3-1.1. Rate of interest set by written agreement--No maximum or usury restriction. Unless a maximum interest rate or charge is specifically established elsewhere in the code, there is no maximum interest rate or charge, or usury rate restriction between or among persons, corporations, limited liability companies, estates, fiduciaries, associations, or any other entities if they establish the interest rate or charge by written agreement. A written agreement includes the contract created by § 54-11-9.

Well, it certainly seems to have worked for First Premier Bank. Instead of taking things to the next level, they chose to go right off the chart. One has to ask the question "why would they do this?" And the answer is obviously "because we can." Greed, apparently has a new king.

I have said this many times before, and it bears repeating, especially now: Credit card companies are not in the business to help consumers; they are in the business to enslave the consumer while enriching themselves. In the world we live in we may need credit from time to time, but we really don't need credit cards. The borrower is slave to the lender and they have made it very easy to enter into servitude. If we refused to use credit cards and operate on cash only, then the credit card industry would either crash and burn or they would be kissing our feet and begging for our business with consumer friendly interest rates, maybe even interest rate wars. Personally , I don't see the latter ever happening, so I vote for crash and burn.

Read Mr. Hageman's entertaining story here:

http://www.americanbankingnews.com/2009/10/15/first-premier-bankcard-offers-customer-79-9-apr-credit-card/

United Credit Source

Tom Johnson

CitiBank To The "Rescue"

CitiBank Strikes Again

Most consumers are aware that the credit card vendors are raising their rates, lowering limits, enacting fees, and just outright closing accounts of their card holders before the new law comes into effect in Feb. 2010. Credit card holders must always remember that the credit card vendor will never look out for your interests; only their own. You are their meal ticket and they want you fattened up. This is all about making money off of (or taking from) the consumer and enriching the banks.

Now comes CitiBank with their latest attempt to appear as the white hat good guys riding in on their white horses to offer the card holder a way to reduce their interest rates. By using circular logic they offer you a reduction of the interest rate (that they just jacked up) if you regularly spend more. (I smell a trap at the pass awaiting all who enter there.)

Please read the linked article below and be aware that this is probably just the first of many more schemes and gimmick offerings by the credit card industry to get deeper into your pocket and keep their hand in there longer.

I don't know if I should recommend you take aspirin or oxygen as you read this. But I will say this: BEWARE - THE CONTENT OF THIS ARTICLE COULD BE VERY HARMFUL TO YOUR FINANCIAL HEALTH.

http://www.thestreet.com/story/10630251/1/citigroup-gets-creative-to-boost-cards.html

United Credit Source