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(BBC)   Study from Institute of the Blindingly Obvious finds consumers with store credit cards charging as much as 20 percent above prime interest rate are being gouged   (news.bbc.co.uk) divider line 69
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2346 clicks; posted to Main » on 14 Sep 2005 at 8:44 AM (9 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2005-09-14 05:29:18 AM  
Study from Institute From The Blindingly Obvious finds consumers with store credit cards charging are being charged as much as 20 per cent above prime interest rate are being gouged.

Fixed it.
 
2005-09-14 05:55:05 AM  
Fixed it.

Not quite.


Study from Institute From Of The Blindingly Obvious finds consumers with store credit cards charging are being charged as much as 20 per cent above prime interest rate are being gouged.

There.

Now I'm off to beat my kids for spilling their milk...
 
ZAZ [TotalFark]
2005-09-14 05:59:38 AM  
Aside from the From/For typo, the headline parses if you group words like this: Study from Institute For The Blindingly Obvious finds (consumers with store credit cards charging as much as 20 per cent above prime interest rate) are being gouged.

By standards of American corporate greed, 30% is a lot. How does it compare to British credit card rates?
 
2005-09-14 08:11:51 AM  
With most stores accepting VISA and MC, some of which charge between 13% to 16%, why would anyone want a Sears card, et als, charging 23% or more? STATUS.

Too many morons still think carrying a wallet full of cards is a symbol of great credit/income/superiority/(pick your superlative.) Credit companies and other financial institutions actually are frowning on the amount of credit cards a person carries when figuring out credit scores and/or for approval of loans.

Those of you who have worked in retail have probably been required to open a certain amount of credit accounts when ringing up a sale or you were reprimanded. Funny, all these companies love to get you hooked then, with equal glee, go after you when you can't pay. And of course joe/jane consumer continue to love carrying plastic.
 
2005-09-14 08:46:29 AM  
Damn. I should lend people cash and make them pay me back with 23% interest. If people are stupid enough to do that......

Don't they know that if you just get a normal Mastercard or Visa, you can talk the interest rate down to almost nothing?
 
2005-09-14 08:47:20 AM  
What? Just use it the one time, get the 10% off for signing up, cancel the account and get another 10% off next time! Many store credit cards are deactivated if you don't use them for 6 months.
 
2005-09-14 08:51:53 AM  
Let's get it over with:

I'm holier than thou because I don't have/need a credit card.

*cough*

/flame on
 
2005-09-14 08:52:06 AM  
Had a Sears card once; when younger.

Oooouuuuch. Can still feel the 24% interest. Lesson learned.

/Craftsman still rocks!
/*2 So does Ty.
/*3 One card now. Paid at the end of the month. I'm considered a "deadbeat" now.
/*4 happy
 
2005-09-14 08:52:22 AM  
Dr. Frisbee: Don't they know that if you just get a normal Mastercard or Visa, you can talk the interest rate down to almost nothing?

Don't you know that by paying cash for things you don't pay an interest rate?

/debt free (except for the house) as of 1.5 months ago
//will never use a credit card again
///pays cash for everything
////found that if you lay cash in front of a store manager and ask for a discount, you often get it
 
2005-09-14 08:54:27 AM  
There is one, and only one, reason to use a store credit card: customer incentive discounts. I have one store credit card (for a clothing store) that gives me cash back for every purchase at a rate slightly higher than my other (normal) cash back credit cards.

For other stores, I have in the past signed up just to get the 10% off as Shiftless suggests, then cancelled the card. Just the other day I (probably unnecessarily) gave some poor employee a list of everything that was wrong with the credit card offered by his store (no cash back, no free shipping when used for online purchases, etc etc), and told him my conclusion was that I had absolutely no incentive to use the card after the initial discount. I don't think he was very amused (or interested), though.
 
2005-09-14 08:54:27 AM  
Study from the Institute of D.U.H. finds consumers with store credit cards charging as much as 20 per cent above prime interest rate are being gouged

NOW it's fixed.
 
2005-09-14 08:55:29 AM  
What? If you pay off the balance before 30 days you don't even pay interest.

Oh, I get it. the credit card companies make billions of dollars so they should operate as part charity - by law. If you're stupid enough to go into debt for clothing than you deserve to be hosed. I could understand a suit, a wedding dress, or some kind of formal wear but anyone that finances from Abercrombie or Gap sooooooo stupid that they'll never have money no matter how much credit card companies "GIVE" them.

I personally think the interest rate on clothing store credit cards should be higher so that way asshats are not as tempted to use a credit card to BUY CLOTHES yet alone finance CLOTHES.

I find it amazing that no one questions the judgement of financing CLOTHES on an Abercrombie credit card - yet the interest rate is objectionable. The credit card companies are to blame.

//////Fark...the Democrat point-and-click apostles
 
j0n
2005-09-14 09:00:15 AM  
Credit cards are stupid. Don't live beyond your means.

/pays cash for everything, is poor as dirt
 
2005-09-14 09:00:38 AM  
I don't know about the US, but in the UK we get lots of '0% APR for one year if you get our card now' offers.

Get them all, max them out buying into low risk stock funds. After a year, sell the stock, pay back the money to the credit company, cancel the card, pocket the difference.

Free money.
 
2005-09-14 09:05:25 AM  
smoovement

I am willing to bet 90% of the people with abercrombie or gap credit cards are between the ages of 18 and 20 and at that age that is where their priorites lie, they live at home with mom and have no other bills to speak of.
 
2005-09-14 09:06:48 AM  
If my brother Stebain gets a call from a credit card company saying he's preapproved he likes to give them shiat when they start asking for more information to see if he then qualifies... it is quite humorous.
 
2005-09-14 09:06:58 AM  
j0n

You can use a credit card even if dirt poor - just pay the balance in full at the end of the month. Interest collection then is at a minimum (zero in some places if you pay off everything within the month) and you don't have to pay ATM or Interac fees.
 
2005-09-14 09:07:12 AM  
MinkeyMan: Get them all, max them out buying into low risk stock funds. After a year, sell the stock, pay back the money to the credit company, cancel the card, pocket the difference.

Wow. Can I live in this perfect world?
 
2005-09-14 09:07:45 AM  
I like BoA mainly because they have a deal with Visa so you can use your debit card like a credit card with no interest. And my picture is on the card, which is great because I'm self-obsessed.
 
2005-09-14 09:08:49 AM  
2005-09-14 05:55:05 AM log_jammin
"There."

Not yet:

Study from Institute Of The Blindingly Obvious finds consumers with store credit cards that charge as much as 20 per cent above prime interest rate are being gouged.


/still clunky
 
2005-09-14 09:17:01 AM  
Lets try this again:

Study from Institute Of The Blindingly Obvious finds consumers with store credit cards are morans.

/we need a 'Rewrite' tag.
 
2005-09-14 09:18:37 AM  
Idle_as_a_painted_ship
Wow. Can I live in this perfect world?

Yes you can.

When you get here, meet me at the public beer fountain and I'll show you around.
 
2005-09-14 09:22:51 AM  
...just pay the balance in full at the end of the month.
This is why I never get the purpose of credit cards. If you're going to pay the whole thing at the end of the month, it's not much of an advantage over a debit card. And if you don't pay it off, it costs more money. And as everyone in the universe already has a debit card of some kind, how come so many people want credit cards?
 
2005-09-14 09:23:21 AM  
"Consumers' sensitivity to APR levels and other charges is low"

Sounds like that is the real problem. But of course, reckless spending is excused.
 
2005-09-14 09:24:19 AM  
Shocked! I am shocked to find gambling at this establishment!

Your winnings sir.

Thank you.
 
2005-09-14 09:32:12 AM  
BenR: much of an advantage over a debit card.


Credit cards work abroad. Most debit cards don't.
 
2005-09-14 09:32:15 AM  
I don't really consider a high interest rate on a noncritical service to be "gouging". We're not talking about gas here, which like it or not, you kinda need to buy, and you kinda need to buy right now, no matter what's happening in the rest of the world. This is about spending other people's money. And keep in mind, the interest rate ONLY applies if you DON'T pay off your cards every month. If people would simply quit spending money they don't have, they wouldn't present themselves with a self imposed crisis which facilitates the ability of the credit card companies to "gouge" them with obscene interest rates. Control people! Control.

-Restil
 
2005-09-14 09:33:21 AM  
Study from the Institute of the Blindingly Obvious finds I am unable to care about consumers who whine about a high interest rate after not paying off their monthly balance.

NOW it's fixed.
 
2005-09-14 09:35:28 AM  
Jesus, people are stupid.

Read this as slowly as needed to understand: there is no such thing as price gouging. Just because you want to pay less for a product or service does not mean you're entitled to do so, nor does your desire to pay less indicate that the current price does not reflect true market supply and demand forces, assuming that there have been no artificial barriers enacted (read: government price controls) that prevent the free movement of supply/demand information (ie. prices).
 
2005-09-14 09:37:50 AM  
Some of us get store cards for the promotions.

I was in the market for a new heat pump, Home Despot was offering 12 months no interest/no payment if I got a card and put the heat pump on it.

Did. At month 11.5, transferred the bugger onto my prime-rate HELOC.

Score!
 
2005-09-14 09:38:43 AM  
Inspectma Gadget

Apart from American Express, of course. I'm pretty sure my visa debit works pretty much everywhere, and I think Switch (Maestro) cards work worldwide as well.
 
2005-09-14 09:45:19 AM  
Yeah, the Publicans are allowing their biggest financial supporting factions (banks, corporations) to gouge the average worker like a bandit.

But the Democrats have lost the support of so many working class Americans because these Americans dont want to vote in defense of their pocket book at the expense of their religious beliefs, and the Republcians know this.

So while the Dems fuel the controversy among their natural supporters with stupid stances favoring abortion on demand and legalizing homosexual marriage, the Republican bankers laugh as they count their cash.

The Democrats are the most ineptly run political party in the world that has ever actually held power or might.

Workers in America really truly need a party that will look after their interests instead of that of the Leftwing Kooks.
 
2005-09-14 09:48:42 AM  
redneckbastard

Yep - how stupid are the Democrats for actually standing by their convictions and supporting the seperation of church and state? Friggin' retards, I know.
 
2005-09-14 09:52:18 AM  
Of course, in today's America, with today's credit system, it's impossible to get a good enough credit rating to get a good interest rate on a house without having revolving credit accounts -- like credit cards you don't pay off every month.

I don't have credit cards. I refuse to get them. But it has screwed me over as far as getting car or house loans goes -- since I defaulted on my student loan a couple years back, the only way I can get my credit back to a place where I don't have to pay ridiculous interest on everything is to pay ridiculous interest on credit cards.

THIS IS A RACKET.
 
2005-09-14 09:52:26 AM  
Now, here's where I could support some Bible stuff - the bible specifically prohibits usury. It's my opinion that 29% is usurious. Therefore, as a Christian nation, a lower cap should be set on interest rates. It's what God wants.
 
ZAZ [TotalFark]
2005-09-14 09:59:28 AM  
Dubya's_Coke_Dealer

Islam, Judaism, and Christianity take different approaches to lending. Many Muslims object to paying any interest and there is a market in loans structured to avoid the religious proscription. Modern Christians are generally not opposed to the principle (the parable of the Talents implies that not all interest is evil) but attitudes may have differed in the past. Jews have the least religious objection to charging interest, which has earned them some anger of the centuries.
 
2005-09-14 10:02:01 AM  
aureliawestlake:

the only way I can get my credit back to a place where I don't have to pay ridiculous interest on everything is to pay ridiculous interest on credit cards.

You don't have to pay a massive amount in interest to improve your credit. Just leave a small balance at the end of every month so the cc company can make a few bucks off you, show a decent payment history, then re-finance when your fico score is back up. Yeah, you gotta play the game, but you don't gotta get bent over by it.
 
2005-09-14 10:08:31 AM  
I've got an old balance from 3 years ago that has gone to collections. Whenever they call up, I make them the same offer I always do (they want 600, final actual balance of goods & services was 250, rest is interest): Me:'I'll pay you the 250 that was used to purchase actual goods and services.' Them: 'But you owe 600'. Me:'I'll pay you the 250 that was used to purchase actual goods and services.' repeat.

I'm amazed they won't just settle it for the $250.

They only call once every 3 months now. I think they like to have new people call me as a learning experience (I'm extremely polite, I just repeat the same thing over and over).

/Yep, was broke at the time I got the card
//not broke now
 
2005-09-14 10:09:44 AM  
aureliawestlake: I don't have credit cards. I refuse to get them. But it has screwed me over as far as getting car or house loans goes -- since I defaulted on my student loan a couple years back

jimb213 is right - ya gotta play the game. With no credit cards, the only information that potential lenders have about you is that once you defaulted on a student loan. That's bad. Swamp 'em with good things instead! What is the objection to a hanging on to a reasonably well-managed credit card?

/parents co-signed on a card for me at 15
//bought a new car last year and got 2.4% from the credit union
///thanks, mom & dad, for helping establish a 9-year positive credit history!
////slashy slash
 
2005-09-14 10:11:11 AM  
if you pay off your card every month, this is not a problem
 
2005-09-14 10:13:49 AM  
Inspectma Gadget

BenR: much of an advantage over a debit card.

Credit cards work abroad. Most debit cards don't.


They do if they have VISA written on them... like just about every debit card issued from a major bank does.
 
2005-09-14 10:18:21 AM  
redneckbastard: Yeah, the Publicans are allowing their biggest financial supporting factions (banks, corporations) to gouge the average worker like a bandit.


That depends very much on what state you are in, actually.
Party expenditures by lending industry by state
 
2005-09-14 10:20:21 AM  
And, actually, I think their biggest supporters (if that info is accurate) would likely be insurance companies and possibly real estate.
 
2005-09-14 10:22:23 AM  
(the parable of the Talents implies that not all interest is evil)

Except that the parable of the talents is about getting converts, not interest.

It's also the one that ends with Jesus (or the king in the parable) ordering his followers to murder everyone to submit to his dominion. Oops.
 
2005-09-14 10:24:10 AM  
murder everyone to submit to his dominion

murder everyone WHO WON'T submit to his dominion

Double oops.
 
2005-09-14 10:36:41 AM  
Abox: Study from Institute Of The Blindingly Obvious finds consumers with store credit cards that charge as much as 20 per cent above prime interest rate are being gouged.

Institute Of The Blindingly Obvious finds consumers are being gouged by stores whose credit cards charge as much as 20% above prime rate.
 
2005-09-14 10:44:13 AM  
gretzkyscores: Read this as slowly as needed to understand: there is no such thing as price gouging. Just because you want to pay less for a product or service does not mean you're entitled to do so, nor does your desire to pay less indicate that the current price does not reflect true market supply and demand forces, assuming that there have been no artificial barriers enacted (read: government price controls) that prevent the free movement of supply/demand information (ie. prices).


While you are philosophically correct, you are technically incorrect, at least in most states, where price gouging is defined by law that entitles consumers to freedom from the practice in certain situations.

That said, I think the article/submitter is confusing "gouging" with "usury."
 
2005-09-14 10:45:22 AM  
I just can't understand why there even is any credit card debt. Nobody here on fark has any debt at all. How in the world do any of these CC companies stay in business?

fark users = all get hot chicks
fark users = no credit cards
fark users = holier than thou


\has credit card debt
\\ has great wife but not a super model
\\\ must bow down to all other farkers
\\\\ I am not worthy
 
2005-09-14 10:57:40 AM  
C0rf: jimb213 is right

you heard it here, folks!!
 
2005-09-14 11:01:31 AM  
jimb213: you heard it here, folks!!

disclaimer: I am not a reliable source.
 
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