Only In America – The Credit Card With The 79% Interest Rate

Nearly 700,000 people in the USA possess a First Premier Bank credit card which charges a staggering 79% interest rate on borrowings. The cards are aimed at customers with bad credit ratings who simply cannot get a card anywhere else. Some have accused First Premier of exploiting poor people who simply cannot afford these sort of interest rates. The 2009 Card Act passed by Congress does not put a limit on interest rates charged by banks: it only prohibits the retroactive raising of interest rates.

First Premier claims to open only 50,000 accounts per month although they receive 250,000 enquiries per month. The bank’s CEO defended his company’s practices, arguing that: ‘If you have a bad driving record, you have to pay more and once your driving record has improved, your premiums will come down. When the cardholder’s credit score improves, they may start to qualify for more traditional types of credit card offers with better rates and less fees,’.

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