The 79.9% APR Credit Card

A while back I blogged about a 79.9% APR credit card offer from First Premier, a subprime card issuer. The point I made in that post was that although the APR was off-the-charts high, it was basically an equivalent pricing to First Premier's other cards, which had lower APRs, but much higher fees.  At the time I did that post, I wasn't able to find a copy of the cardholder agreement for the 79.9% APR card. But thanks to the Credit CARD Act and the Federal Reserve, here it is in all of its glory.

Comments

[Jason Preece]

That's crazy

[Allan]

Not crazy. It is merely a question of how you want to pay for credit. I think having a 79% interest rate is much more fair an honest than having a 15% interest rate with hundreds of dollars in fees that raise the cost of the card to the same as a 79% rate.

[LegalSecy]

I wonder how many elderly, visually impaired and those otherwise unable to read 7.5 pt type closely have skimmed over that and thought they read 7.9% rather than 79%?

[FactChecker]

That is nothing but predatory, of course most credit card companies don't charge that rate, but high rates are charged anyways on credit cards even with near no inflation rates, card companies are charging 13% interest for the best clients. Interest rates of 20% are common.

I have to wonder if the free market bears this or if it is just a predatory trap. Allan does raise a point but fees will kick in with this card.

[abe @ Merchant Service]

I wonder how long it will take them to go after credit card processors that mislead business owners with fine print and lock them into 3 yr. contracts.
There are very few merchant service companies that offer no set up or termination fees. That should be the next point of interest for the Gov't.

[Oversea Chinese Banking Corporation]

crazy thin....isnt it guys...