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First Premier Bank Charges 80% Credit Card Interest
Sunday, December 20, 2009

For those consumers who want to know what it’s really like to be gouged by a credit card company, check out First Premier Bank. The subprime credit card issuer is experimenting with a new card that hits customers with a 79.9% interest rate.

Yes, 79.9%.

The card used to come with a 9.9% rate, but now that the government is forbidding excessive fees on credit cards, First Premier is attempting to recoup its money through a different means. Until now, the company levied $256 in fees in the first year for card holders—who received a credit line of just $250. But starting in February, the new federal law will cap such fees at 25% of a card’s credit line. No restrictions exist, though, on interest rates.

“It’s the highest on the market,” credit card analyst Anuj Shahani told the Associated Press. “It’s the highest we’ve ever seen.”

First Premier intends to market its new 80% interest-bearing card to people with bad credit who can’t get cards anywhere else.

-Noel Brinkerhoff

Credit Card's Newest Trick: 79.9% Interest (by Candace Choi, Associated Press)

No, Your’re Reading That Right (by Bob Hansen, NBC San Diego)

Comments

Stewart - 12/23/2009 1:04:40 PM
Uh....maybe you need to brush up on your government Linda! The Secret Service was established to protect our nation's leaders and visiting dignitaries. They don't give a rat's patooty about sub-prime credit card lenders. Unless they are trying to assissinate an elected official! Secret Service Website: http://www.secretservice.gov/ , First PREMIER website: http://firstpremier.com/ (It has links for all branch locations......)

Steve - 12/21/2009 1:08:25 PM
There is a First Premier Bank, and they are headquartered in the state where banks can stick it to you a thousand different ways--South Dakota. Why do you think so many banks have offices there? I can't recall the name of the founder of this criminal organization, but he passes himself off as a great humanitarian. He gave tens of millions to a Sioux Falls hospital, for example. Keep in mind that Al Capone also fed the poor in Chicago during the depression, and Pretty Boy Floyd was practically a Robin Hood. This company is still a carload of criminals, and they deserve prison and confiscation of their assets.

Dantes - 12/20/2009 9:28:13 PM
Simple solution. Don't apply for it. If you fall for this scam, you victimized yourself.

Linda Taylor - 12/20/2009 3:05:05 PM
There is no first premier bank, it is a PO box where someone using a credit card making machine sends out credit cards. They give you a limit of 250 dollars. They cut off your credit at about 70 dollars and then you recieve a bill for 270 dollars including over the limit fees, interest fees etc. I have informed the secret service but I see they have done nothing about it yet. I even called their phone line to get an address to give to the SS but they said they have too many branches so they couldn't give me an address. Luckily I paid with a debit card so I will be getting my money bank. Please spread this news and let's see the CEO in prison and make the secret service do their job.

Chief - 12/20/2009 12:42:13 PM
If there is any justice in the world, this "bank" will be just as full of life as the Dodo bird at the end of a year. If there is justice in the world, their CEO, "MR." Dykhouse, will be broke right along with his "bank". To stuff that down the throats of those who can least afford it is nothing less than grand larceny dressed in a three-piece suit.

sal puello - 12/20/2009 8:34:30 AM
Yes, you are correct. I was one of those people who got victimized in years past. What amazes me is that we all talk about it, write about it, even the President talks about it and nothing is being done right now. They will control somewhat the interest rate in the future, but they have given these bastard a lot of room to screw people now and even with the new limits, they have not done enough. What a country.

maggie - 12/20/2009 8:21:01 AM
First Premier Bank, well these are desperate bankers, probably flat broke themselves, boycott them, let the bank fail, let the CEO's lose their homes, and go on welfare.