Household Bank Offers Exciting 29.31% Introductory APR!

Consumer Affairs has posted up a credit card horror story that we absolutely covet. A phlegmy rope of drool pendulously dangled from our collective royal lip even as we read it. It’s just that good. Why can’t you guys get fucked over like this?

John from New Falsmouth, Massachusetts had an existing credit card with a respectable 9% APR. A decent rate — most of us would hold onto such a card with our very life’s breath. Nevertheless, he was tempted by an offer for a Household Bank platinum card that promised a 0% APR for the first twelve months. So he decided to transfer his credit.

After reading the fine print and all the forms, John sent in the balance transfer check he had received from Household Bank. The problem? The bank had sent John the wrong form and they transferred his balance over with a whopping 29.31% APR extra! And not only would Household Bank not budge, but the check bounced because of the exorbitant interest, which led John to rack up late fees, raising the rate even on his lower cards.

Only summary needed: don’t get a credit card from Household bank.

Zero To 30 Percent In Just One Month [Consumer Affairs]


Edit Your Comment

  1. Paul D says:

    don’t get a credit card from Household bank.

    In my less-financially-secure days, I got a HHB card via Best Buy (I know, I know). The interest rate is ridiculous. I’m still paying off the balance and will be cancelling the card soon.

  2. Ben Popken says:

    Michael writes:

    “Don’t forget, Household Bank has been cited for pretty bad predatory mortgage practices in the past as well. I had a horrible experience with them with my first house, when I was young and stupid and needed a 2nd mortgage for debt consolidation and home improvements. Let’s just say one of the problems I had with them is that they credit interest and my monthly payment according to when they deposited my mortgage check (they didn’t take online or automatic payments). When I started making extra payments, they started “losing” the checks. I actually sold my house to get out from under them. Worse mistake of my life. I know The Consumerist likes more juicy detail, but I’ve just reminded myself of how I got suckered by them, and it’s a painful memory.”

  3. thrillhouse says:

    Only summary needed: don’t get a credit card
    ***end correction***

    you’re playing with snakes and you will get bit

  4. SpecialK says:

    If I’m not mistaken, isn’t Household owned by HSBC?

  5. Morgan says:

    Thrillhouse, that’s a bit too simplistic a view. Credit cards are very convenient ways of making purchases, particularly when shopping online, and allow you to build up credit for that house purchase that many someday aspire to. Allow me to correct your correction:
    Only summary needed: don’t spend more with your credit card than you actually have in your bank, and always pay off the card in full every month.
    ***end correction***

  6. thrillhouse says:

    Morgan, you’re just dead wrong. Stop believing the lies.

    >You don’t need to “build your credit”. You can qualify for excellent mortgage rates, thru manual underwriting. and by the way – credit cards with zero balances will count AGAIST you when you get your credit score based mortgage.

    >Debt cards are just as convenient online, and carry the same protection as credit cards. Best part is – its your money. No credit, no loan, no debt.

    >Your correction is great – if people actually did it. Most don’t. Consumer debt (credit cards) is out of control in this country totalling somewhere near $630 billion. the average household in America carries about $38K in consumer debt.

    >Yes, it is a much simpler life sans-credit-cards. And you’ll never ever have to deal with their scum reps on the phone. Its a lie, its a trap. Get out. I live debt-free, and its great.

  7. nelletali says:

    To SpecialK: Yes, Household is owned by HSBC. To Morgan: In regard to your ***correction*** I had a Household card that I used because it offered a zero percent transfer. The transfer went off without a hitch, I then transferred it to another card when my introductory rate expired. I then didn’t use the card because as you said “Don’t spend what you don’t have in the bank.” Well, yesterday I received a letter from Household Bank that they were cancelling my account due to inactivity. I have never in my life heard of such a thing. I called customer service and basically got the “so sad, too bad” attitude. If I wanted the credit I would have to re-apply. Of course if I re-apply that is an iquiry on my credit report therefore reducing my score. I’m not even sure how this whole account closing is going to look on my report since it was closed by them and not me it could look bad. The fallout may have just begun. That’s the price you pay for trying to manage your credit properly. So now I have to agree with thrillhouse and just dump all the cards. It just isn’t worth the hassle.

  8. Observerinpa says:

    To Thrillhouse: Debit cards DO NOT offer the same protection as credit cards online or otherwise.