Toni Riss had a credit card with a 79.9% interest rate.
The 58-year-old woman from Texas thought she struck gold when she found the First Premier card, which is aimed specifically at consumers with poor credit.
"I had an accident on a motorcycle, went through bankruptcy to pay for medical expenses and my credit went to hell in a hand basket, so I was looking for credit cards for people with bad credit" Riss said.
They granted her a card with a $300 limit -- typical for new customers -- and a starting rate of 29.9%, which Riss said she considered decent given her credit score.
But about six months after opening the card -- at the end of 2009 -- she received an unwelcome surprise in the mail.
"I about had a heart attack when I got a disclosure notice saying that my starting rate of 29.9% was going up to 79.9%," said Riss. "It was ludicrous. Talk about a highway robbery."
Reminds me of a great article just posted here at http://bucharestexpat.com/2011/02/banks-friend-or-foe/ Yes of course I agree that people should be adults and recognize the benefits and pitfalls of such a high interest rate card, however it also doesn't take a genius to know that the bank is SCREWING people by switching around the clients rates behind their backs. I think we all know banks lie and swindle!
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