Interesting Article on Fee-harvesting credit cards

[rwmtd]

Hi all, I know quite a few of us here on the forum have the cc that charge us fees. I just found this article very interesting http://www.creditcards.com/credit-ca...llion-1282.php. What it discusses is a proposed crack down on the issurers that make a profit on such cards. Just something I thought would be of interest.

rwmtd

[Rob72830]

Is First Bank of S.D. (one of the banks in the article) the same as First Premier Bank? If it is I can't hardly wait to get back all that money I have paid to them. Seriously, I can see subprime cards disappearing if those banks can't charge large fees to people with bad credit because I don't think they will take that risk to issue credit cards without high fees and the prime banks don't do it now. So I think it will come down to this for people with bad credit: the only cards they will be able to get will be secured cards and for other loans, they will have to have large downpayments. IMO, if the government wins their case, credit repair will be harder to do.

[keys]

Is First Bank of S.D. (one of the banks in the article) the same as First Premier Bank?

I'm pretty sure they are two different banks. I really didn't think that Tribute (CompuCredit) is as bad as First Premier or Plains Commerce though. I know the AF is high ($150), but at least you get some room w/ available credit; the other two bs you w/ only 50 bucks available.

[hjm331]

Thanks to the reviews here on this site, I have learned that the difference between First Premier and Tribute are that Tribute gives you increases as long as you maintain a good history with them and First Premier doesn't.

[Meya]

Hey hjm331, my sister says she gets a small cli from them every now and then, unless she is telling a bald face lie!

[hjm331]

The highest limit I've seen on a First Premier card is $300. That's pretty pathetic.

[mrrob]

What a great article, thanks for sharing.
mrrob

[rwmtd]

What a great article, thanks for sharing.
mrrob

mrrob you're welcome. I just wanted to start contributing since you all have provided me with so much info.

[Meya]

Hi All, Ash wanted to post this article to the board, but is having some type of technical difficulties, but anyway, i think it is a great artcle and relates to the same thing that has been started here:

1. http://www.ftc.gov/opa/2008/06/compucredit.shtm

2. http://columbus-ga.bbb.org/WWWRoot/R...&firm=18000276

Way to go on the articles your two!

[rwmtd]

Hi All, Ash wanted to post this article to the board, but is having some type of technical difficulties, but anyway, i think it is a great artcle and relates to the same thing that has been started here:

1. http://www.ftc.gov/opa/2008/06/compucredit.shtm

2. http://columbus-ga.bbb.org/WWWRoot/R...&firm=18000276

Way to go on the articles your two!

Thanks Meya

[mrrob]

That was a great article, thanks for alerting us. It really opened my eyes
mrrob

[Meya]

No problem buddie

[hjm331]

Cards that charge up to $250 worth of up-front fees should be sued. I don't know why everyone is surprised, they had this coming to them.

[keys]

Thanks for the info rwmtd and Meya. I wonder how this will effect those of us that have CompuCredit cards (Tribute)? Maybe they'll be more inclined to give better cli's or waive their high AF's, guess we'll just have to wait and see.

[hjm331]

They might waive the monthly fee and fee for making payments.