It’s probably not a banner day for some folks at US Bank, after two of the bank’s credit cards landed top (dis)honors in a roundup of worst credit cards of 2012. [More]
It sounds ridiculous. First Premiere Bank launched a new credit card with a 79.99% interest rate. It targeted consumers who couldn’t get a credit card anywhere else, and it was popular. Too popular, in fact. “A lot of the people ran up the card, defaulted and went directly to charge off,” First Premiere’s Bank told CNN Money. Since then they’ve dropped it to 59.99% and that’s just low enough to keep enough people paying off interest to make it profitable. But wait, wasn’t the CARD act supposed to prevent these really hight rates and stuff?