Credit Card offer inside: PLEASE READ!

[iOWNme]

A family member of mine just received this offer in the mail. I will let the pics do the talking:



USURY: Discuss......

[k-os]

Holy crap! That's legal?

[General of Darkness]

I haven't had a credit card in probably 10 years, is that a good deal? :ROFL:

[Carbon]

Holy crap! That's legal?


Sure it is... for the trib... for the pirates. And only as long as you're on the payment end.

[Ponce]

Sure, but first you have to give them $500.00 to make sure that you can pay the interests and if you don't they then will send in the bone breakers AND THEN take the interest from your deposit.

First post of the day.........good morning to one and all.

[k-os]

Holy crap! That's legal?


Sure it is... for the trib... for the pirates. And only as long as you're on the payment end.


I thought for sure there was a 25 or 29.99 max at one point. Maybe just in Florida? Or maybe they mowed over that restriction in some sort of "financial reform"?

I bought a car from a guy who financed the the less fortunate people of my area, and he told me he charges the maximum amount of interest every month, which was either 25.99 or 29.99 (I can't remember). This was in July of last year. He had no problem finding customers, by the way. There were people lined up outside his door waiting for the opportunity.

[Carbon]

Holy crap! That's legal?


Sure it is... for the trib... for the pirates. And only as long as you're on the payment end.


I thought for sure there was a 25 or 29.99 max at one point. Maybe just in Florida? Or maybe they mowed over that restriction in some sort of "financial reform"?

I bought a car from a guy who financed the the less fortunate people of my area, and he told me he charges the maximum amount of interest every month, which was either 25.99 or 29.99 (I can't remember). This was in July of last year. He had no problem finding customers, by the way. There were people lined up outside his door waiting for the opportunity.


It varies from state-to-state... sorta:


Credit card companies sidestep usury laws (http://www.bankrate.com/brm/news/cc/20020320a.asp)
By Lucy Lazarony • Bankrate.com

For hundreds of years, societies all over the world have protected borrowers by limiting interest rates charged by lenders.

But in today's credit card market, American borrowers are on their own.

Less than half of all U.S. states bother to cap credit card interest rates, and few credit card issuers are based in these states anyway.

Most major credit card issuers are based in states without usury laws and without interest rate caps on credit cards. Banks and credit card issuers based in these states can charge any interest rate they wish -- as long as the rate is listed in the cardholder agreement and the borrower agrees.

And thanks to a 1978 U.S. Supreme Court decision, these the-sky's-the-limit rate policies dominate the credit card business.

State of interest rates
In Marquette vs. First Omaha Service Corp., the Supreme Court ruled that a national bank could charge the highest interest rate allowed in their home state to customers living anywhere in the United States, including states with restrictive interest caps.

"It's whatever is agreed to in the contract," says Michael Donovan, a consumer attorney and partner at Donovan Searles in Philadelphia.

"They can export rates to other states and override state law limits."

When it comes to credit card interest rates, the law in a lender's home state rules. It doesn't matter what kind of rate cap exists in a customer's state.

A funny thing happened after the Marquette ruling. Major credit card companies began relocating to states with liberal or no usury laws. New York-based powerhouse Citibank moved its credit card business to South Dakota in 1981.

"Citibank went to South Dakota, not because South Dakota was a banking center but because it had that particular law," Donovan says.

In 1982, the four largest banks in Maryland relocated their credit card operations to Delaware because of that state's lender-friendly credit card laws. Other states with lender-friendly credit laws include Georgia, Illinois, Nebraska, Nevada, Rhode Island and Utah.

To hang on to the credit card business, many other states loosened state usury limits.

In the early '80s, most states capped credit card interest rates between 12 percent and 18 percent. Today's caps are in the 18-percent to 24-percent range.

Hawaii and the District of Columbia cap credit card interest rates at 24 percent, which isn't much of a cap at all. Missouri caps card rates at 22 percent. And Colorado, Indiana, Kentucky, Oklahoma, Tennessee and Wyoming allow credit card interest rates up to 21 percent.

"The unmistakable dynamic is in the direction of deregulation," says Mathew Street, associate general counsel at the American Bankers Association. "The states have moved in the direction of raising the caps or removing the caps."

(article continues (http://www.bankrate.com/brm/news/cc/20020320a.asp))

[freedom42]

I still have a Chase card with 3.5%. I must be doing something right. Only use it to buy online, and never do that much.




I bought a car from a guy who financed the the less fortunate people of my area, and he told me he charges the maximum amount of interest every month, which was either 25.99 or 29.99 (I can't remember). This was in July of last year. He had no problem finding customers, by the way. There were people lined up outside his door waiting for the opportunity.


k-os, You know the guys at Beach Cars? :ROFL:

[k-os]

k-os, You know the guys at Beach Cars? :ROFL:


No, the place was called A to Z or something like that. But I am sure there are plenty of places like that around here.

[Ash_Williams]

Only people who are irresponsible enough to warrant a 60% interest rate are irresponsible enough to take it.

[zusn]

You should see the pawn shops. My buddy had one in WA state about 10 years ago. The state limit on pawn loans was 378% Basically, if he could get the people to pay their interest for 90 days, he already made back the money he loaned. Plus he still had their stuff and they still owed the principal amount.

59.9% on a credit card is obsurd. Gotta love that South Dakota loophole.

[1970 Silver Art]

A 59.9% APR for that credit card? I do not see the problem with it because it sounds like a very good deal to me. :sarc: :sarc: :sarc: :sarc: :sarc: :sarc: :sarc:

[willie pete]

Not only the 59.9% APR, but a $120 Fee to sign on and $6.25 every month for the annual fee, so without ever even charging anything, your payment will be $12.24 a month, and for that you get a credit limit of $100 .... :plll :plll :lol :lol :lol :lol