Friday, December 18, 2009

read the fine print on credit cards

An ad in a New York paper encourages consumers to call for a preapproved credit card...the interest is 79.9%. Much ado was made a few months ago when President Obama came to the aid of a woman who had been charged exorbanent penalities when a University charged tuition to her credit card which was over its limit.

The bloated APR being chardged by the First Premier Bank comes following the recent legislation which limits caps to fees banks can charge to 25% of a card's credit limit. A recent mailing for a preapprded First Premier card lowers fees to just that limit...$75 in the first year for a credit line of $300. The new law doesn't set a cap on the interest rates credit card companies can charge. Hence this particilar card is charging 79.9% interest. These terms are totally unbelievable.

We need to read the fine print. We've been getting new information about our accounts as banks prepared themselves for how they would be conducting business starting in February when the new regulations take effect.

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