Friday, December 18, 2009

80% APR?

So when the credit card reform got pushed through, there was a cap on fees to 25% of the maximum balance. And to cope, the credit cards decided to raise rates to 80% APR of balance. It seems like alot but keep in mind the max balance on these is only $300. Still, the numbers baffle. The Foxnews story has more.

I guess what I find so unsettling is that these companies exist by preying upon the poor. I think the problem is two fold. One, they probably have alot of people who dont pay their bills. Two, due to this, they need to raise their fees to exculpatory highs to maintain their profit margin. I doubt they are making money any more so than the big guys.

But still, a $75 fee per year and 25% APR is just unconscionable to me. I guess some people just love preying on 'morons and suckers'.

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