Caller has credit card interest rate hiked to 64%! on clarkhoward.com

We have a new interest rate hike to share with you that tops anything we've previously heard…and you're not going to believe it!

A caller named Jodie sent us his credit card statement to prove an earlier claim about the terrible treatment he's been getting from his Chase MasterCard.

His 20% interest rate was raised to 64.20%!

Clark had been incredulous before actually seeing it with his own eyes. Take a look below if you're still unconvinced.

Interestingly, the consumer champ did not recommend that Jodie close the account. That would only hurt his credit score.

The whole episode reminds Clark of a recent guest editorial about payday lending that he read in a newspaper.

The author was a college professor who was arguing that if you outlawed payday lending, then you might have criminals stepping into the marketplace void and charging interest rates of hundreds of percents themselves.

The penny-pincher, however, see this as faulty logic. If you legalized murder and someone went out and killed another person, they've still killed someone, right?

It's all a matter of perspective when you get down to it. After all, Jodie's 64% credit card interest rate would be a great rate in the world of payday lending.

What others are saying

Read EVERYTHING before writing an article
The 64.20% interest rate (if you look lower) represents the TOTAL finance charge for that particular statement. This cardholder more than likely took out a cash advance this month. The fee that was charged for the cash advance needs to be figured in the finance charges, thus, the 64.20%. They really have an interest rate of 27.24% on purchases if you look above the big oval around the incorrect apr. They also have an interest rate of 19.24% on cash advances. So please, read everything over prior to writing an article.
By Smith @ 11/06/09 09:20:52 PMreport abuse
Annual Percentage Rate
You think 64.20% is high, my son's card by Capital One last month said APR 85.80 applied this period. I just don't know how they can get away with this.
By Shelly @ 10/27/09 10:15:47 PMreport abuse
Credit Card Interest Rates
We owe $35,000 in credit card debt. We recently received notices from most of the accounts the rates are being increased due to the current economic conditions in the U.S. Basically, the greed is rising. Finance charges on one are $44.97 out of a $53.00 payment. Now, the finance charge will be $48. Wow, I can get this account paid off in 20 years. Something has to bring this to a halt. Americans, all of us, need to stop paying. Just stop. Let the entire U.S. go into bankruptcy. You can't get blood from a rock.
By sailorgirl55 @ 08/25/09 11:23:46 AMreport abuse
BofA/MBNA
First they cut my limit from $20,000 to $12,500. I didn't care. Then they raised the rate from 9.5% to 24.99%! That got my attention and I paid the small balance in full. The closing date was the 3rd, the due date was the 23rd. They recieved payment on the 10th.Next month they tried to charge me $1.50 for the 7 days from closing to payment. I had a MELTDOWN on the poor kid in cust. service and the charge was removed. I will never use that card again.
By Whalewidow @ 07/21/09 03:15:02 PMreport abuse
Chase Minimum Payment Increase
Just received notice from Chase that my minimum payment is increasing from 2% to 5% as well. My husband was laid off in December and I have done everything I can to keep current on all bills, not missing one payment! I had to drop to minimum payments until he gets a job somewhat equivalent to what he was making (which is proving to be impossible). I called Chase and was told there is nothing they can do and maybe I need to see a credit counselor. I literally lost it with that idiot! My current interest rate is 3.99% and he is telling me to see credit counselor to lower my payment but increase my interest rate. Please for the love of God someone tell me how that makes sense? I have worked hard to stay current on my debt and not let the lay off affect me. My credit score is good and in the last (honest) 13 yrs I have NEVER been late on any payment, so why am I having to pay for all those people who have been irresponsible? At this point I am over being treated like this and told him to note my account that I am able to make the current payments at 2% but when they increase to 5% I will not be able to make another payment and they will have to send me to collections and write the $11,000 balance off. I'm having a hard time understanding why they are willing to make me default and risk not getting any more payments? Truly over this!
By KJ @ 06/29/09 09:11:30 PMreport abuse
chase credit card company's BS
6/22/2009. I received a letter from Chase credi cad company said that they will change minimum payment from 2% to 5% and raise interest from 8/1/2009.
I called Chase and talked their supervisor who said that I have to call back after it is effected. he said he can't say anything til he will see the changes.
I asked him to transfer my phone to proactive solutions department to talk to...
I need time to prepare and I never thought it will be happened to me. I'm keeping out-standing credit history many years.
Then, proactive solutions department, No one picks up the phone. It was automated system.
I gave up after wasting 20 min of my time.
They gave me only 39 days to prepare for 5% min payment which will be $850.00 monthly.
I can not afford to make payment.
$850.00 ( currently $340.00 monthly) for one card
payment every month? I wish I could pay off Chase,
But I can't. How could they possibly to do that?
I wish I could have big cash to pay off all credit debts.......
I feel like if i touch other person lately, I get burned and frastrated... It is so stressful country the America became....
By shijap 6/22/2009
By shijap @ 06/22/09 09:49:05 PMreport abuse
It's a minimum finance charge
With the avg. daily balance so low, that's obviously a minimum finance charge and the bank has to charge 64.20% to allow for the $1.00 minimum finance charge. Please learn to read your card member agreements and your full statements.
By Chris @ 05/18/09 09:59:11 AMreport abuse
Another Chase Horror Story
Yep, noticed last month, Chase doubled my APR from 8 to 16% for no reason-and they were very rude when I called to ask (nicely) why? No, I didnt call their mothers fat and stupid.
But, they did transfer my call to a voicemail. I hung up, immediatedly called CitiBank and got a new card with APR 0 until end of the year, transferred the balance of Chase and cut up Chase Card.
So Obama has changed credit card rules for NEXT YR....we are sitting ducks, at the mercies of the credit card companies until then. Why doesnt someone do something NOW?
By merijoe @ 05/10/09 03:14:50 PMreport abuse
Effective Annual Rate
Unfortunately, Howard, we can top this! My husband March staement on our Alaska Airlines card showed an effective rate of 80.64%!
By Mickey @ 05/09/09 03:05:11 PMreport abuse
Misrepresentation
Clark- I am really dissapointed in you. I usually trust you to tell the whole story. Obviously as others have pointed out you failed to do so in this instance. I really hope that you come clean on this and explain the difference between the effective and the corresponding apr. Honestly I have lost a little respect for you because of this. I am glad I came online to see the actual bill and see the rest of the story.
By Justin @ 05/09/09 12:32:50 PMreport abuse
credit card abuse
I gave up in January when Citibank tanked my credit even though I paid on time every month. I don't care anymore, they are going to get what I give them. As for Chase I hope they crash and burn, I will bring the marshmallows
By cindy miller @ 05/08/09 10:47:53 PMreport abuse
Chase
The recent Fed stress test is nothing more than another big scam by Washington. Fact of the matter is that the FDIC routinely has been conducting "monthly" stress tests on banks to test their stability for many years. While Chase may have "been one of the few banks" to pass the recent stress test the Fed's just had, none of them actually pass the test given by the FDIC

Chase is one of the worst offenders of interest rates and fee "jacking". Maybe not in this particular situation, but overall.
By John @ 05/08/09 10:34:58 PMreport abuse
Enough Already!
When one of my cards reached thirty five percent interest, I just stopped paying it. They are not willing to lower their rate so I can pay, not only the wild interest but the principal. I have not used this card in two years and the balance because of the interest has not dropped. I am 72 years old. Not planning on anymore purchases in my lifetime. Sue me. I don't have anymore money to feed the vultures!
By CF @ 05/08/09 09:21:36 PMreport abuse
Your Deceptive Post
Effective APR does not indicate the interest rate your paying!!! It's reflective of fees, as well. And when you start with a purchase of $18.70, it doesn't take much of a fee to come up with an effective APR of 64%. That said, I do think the actual rate in purchases of 27% is usury and should be reduced
By Brian Halla @ 05/08/09 09:17:43 PMreport abuse
Minimal Finance Charge
this happened to, My APR was up tp 87.8%, if u read the small print u will see that there is a minimal Finance charge of $1, that being the APR aplied for that month
By Dan @ 05/08/09 06:05:15 PMreport abuse
use cards wisely
I had a creditcard cutting party some yeasr ago. It feels great to not have cc debt. I still have a cc and use it occasionally for online purchases, but I always pay the balance via my online banking account as soon as I receive the ordered items
By _aleph_ @ 05/08/09 03:53:47 PMreport abuse
How did Clark miss this?
The 64.2% is the effective APR. Now if the corresponding APR was 64.2% then we have something to talk about.
By Cyberdine @ 05/08/09 03:15:02 PMreport abuse
Enough!
I recently came into enough cash to pay off all of my cards.. Because of the double-cycle billing fiasco, Chase charged me another $3.84 on an account that was paid off.. I sent them 400 loose pennies and now that balance shows -16 cents. Yes it cost me more in postage than that to send the pennies, but the satisfaction is well worth it! Screw them!
By WageWhore @ 05/08/09 03:03:19 PMreport abuse
Money and greed is this country-That's what happened
I agree 100% with JD in that some people have become dependent on CC which is money that they don't have. I've used a CC in the past but made sure I'd have enough to pay in full at the end of the month.

This country has placed a high value on money and material things in my opinion and this is what's being passed on to children instead of teaching values like living within our means, helping others and giving thanks for what we have instead of envying others for what we don't have.

I have family in Ecuador and from their comments can tell that they envy people in the US for the lifestyles but they don't know that alot of good is lost in the process when we only work for having material things.

Lupe
By Lupe @ 05/08/09 02:55:44 PMreport abuse
credit card limit decrease
yes one of those Mega banks did it to me too cut my credit in half (BA)
By nancy @ 05/08/09 02:49:49 PMreport abuse
Sears raises interest rate to 58%
Ok, so I thought it was bad that my Visa card company has stopped the practive of allowing consumers to request a small interest rate decrease for good payment and credit history with them, now they have started to slowly raise their interest rates to unheard of highs. Some cards, like my visa, have been doing it slowly, just a few points at a time. However, today SEARS tops my list, as I received my card statement today, (of which the balance is only $32.00), and they have raised their rate to 58%. I should mention that my credit score is over 750 and that I pay my cards on time and always pay the balance or close to it when possible. What power as a citizen do we have? Howard says that if we close the accounts that it will further damage our credit score, but how do you defeat this imoral practice?!
By j @ 05/08/09 02:08:54 PMreport abuse
cash is king
never forget these old saying... in god we trust, for everyone else, it's cash.

and, remember the golden rule...he who has the gold rules.
By brian @ 05/08/09 01:35:52 PMreport abuse
Get it right before you throw stones
If someone does not know how to calcuale an effective APR, they probably shouldn't libel one of the only banks that passes the stress test. This was clearly a situation where a low balance on a card that was assesed a $1 fee caused the effective APR to be abnormally high. The nominal interest rate ( which is what should have been talked about ) was
quite reasonable. But then again, that wouldn't be scare tactic worthy would it ? Clark owes Chase a big apology.
By Jay @ 05/08/09 12:47:22 PMreport abuse
Interest Rates
JD, I certainly agree with you in theory. It would be nice if everyone cut up the plastic. If we did, the power would be returned to us and the banks wouldn't be able to totally rip us off. But, there has to be a starting point. The only way this can be accomplished is for Washington to put a stop to the banks getting away with "usary". It won't stop everyone from cutting up their cards, but, I think a lot of people have learned their lesson and if we can just stop the "bleeding"and get consumers to a place where they can stop charging and start paying down their debt, it would be a good start. As it stands now, anyone already in debt, probably around 80% of the population, needs to have their debt stablized, where if they stop charging, they won't get further into debt simply by the banks "jacking" their interest rates up to 30%. Obvisously, if a person can't payoff the CC at 7%, even if they stop charging, their not going to be able to pay it off at 30-35%

What Congress has allowed the banks to get away with the last 15-20 years is beyond illegal, it's almost immoral. All so they can get re-electing with the donations from Wall Street and Banking.

Aint2 had a great point, about the fine state of South Dakota. In an effort to woo these giant financial firms (Citicorp) to South Dakota they allowed them to get away murder on the interest rates. With all due respect to people that live in South Dakota, why would any Corporation want to move their operations to SD??? Only one, because they relaxed the law to allow them to get away with this practice.

John
By John @ 05/08/09 10:33:54 AMreport abuse
It's a technicality
As others have pointed out, this is not a true 64% interest rate. It is probably the $1 minimum finance charge assessed on a very small balance. $1 on a $18 balance for a month is equivalent to about 66% per year, which is what we're looking at.
By MC @ 05/07/09 11:11:32 PMreport abuse
WE want a name
JD, it would be nice if everyone did what you asked, but it's not going to happen, coz most people live on credit cards and they just don't have the cash on hand.
By Guy @ 05/07/09 10:01:05 PMreport abuse
64% credit card
Based upon the Average Daily Balance, it appears that the caller was assessed the minimum finance charge of $1.00. When the minimum finance charge is assessed, the credit card company is required by Federal regulations to disclose the Effective APR which is higher than the nominal APR. Minimum finance charges are disclosed in the Schumer box.
By Chuck @ 05/07/09 09:53:10 PMreport abuse
64% Interest!
This is not a 64% interest rate. Jodie did not show the actual interest. If you notice their is a daily periodic charges column. It looks like he paid the card down in the middle of the month. His interest charges were higher at the beginning of the month on the higher balance making the overall rate look very high. It is very hard to judge something when all of the information has not been given.
By James @ 05/07/09 03:58:08 PMreport abuse
Bank
I'll tell you what happened JD. We elected Obama into office! We wouldn't be in this mess with the banks if we didn't bale them out. What a crock! I predict Obama to be a "one term" President. I won't vote for him that's for sure.
By Me @ 05/07/09 03:08:26 PMreport abuse
We want a name!
Likely a one-shot junk fee for something. We must wonder, what was the fee for? What bank is this? My guess is a balance transfer, given that the avg. daily balance is less than twenty bucks. But at 28% interest, who would want to carry something like that?

My two-cents: stop using these damned credit cards altogether and fire these turkeys! Whatever happened to cash on the barrel? Cash rules the day! I *always* get a cash-discount of at least 10% on major purchases and auto repairs, just for the asking. People end up paying twice what everything's worth then they use plastic. No wonder money is in such short supply!

Today I learn that Citibank is into us for $300 billion; BofA for $177 billion. Where will it end? I'll tell you where: it will end when Americans FIRE THESE TURKEYS. If everyone cut up the plastic and vowed to start spending their own money, you'd see a shakeup of epic proportions, and the survivors would serve customers for a change.

Who among us has the balls to cut up all their plastic? Has America been stripped of all sense of self-reliance and independence? Are we so weak that we can't survive without plastic and government handouts? What the hell has happened to this country???
By JD @ 05/07/09 02:58:16 PMreport abuse
64% Credit Card
Everybody relax - since neither the purchases or cash advance rates are showing that high, this means that there is probably a one-time fee this month (probably cash advance fee) which TEMPORARILY artificially inflates the APR. Next month, it will show 27.24%.
By Brett @ 05/07/09 02:44:10 PMreport abuse
64% credit card
The Supreme Court happily ruled in the 80s that banks could move their credit card operations to any state they chose. And several states, esp. South Dakota, happily removed any upper limit on credit card rates. So why are we surprised. But don't worry, the banks will now be solvent. Sadly, we won't be.
By aint2 @ 05/07/09 02:09:16 PMreport abuse

Read EVERYTHING before writing an article

The 64.20% interest rate (if you look lower) represents the TOTAL finance charge for that particular statement. This cardholder more than likely took out a cash advance this month. The fee that was charged for the cash advance needs to be figured in the finance charges, thus, the 64.20%. They really have an interest rate of 27.24% on purchases if you look above the big oval around the incorrect apr. They also have an interest rate of 19.24% on cash advances. So please, read everything over prior to writing an article.

By Smith @ 11/06/09 09:20:52 PMreport abuse

Annual Percentage Rate

You think 64.20% is high, my son's card by Capital One last month said APR 85.80 applied this period. I just don't know how they can get away with this.

By Shelly @ 10/27/09 10:15:47 PMreport abuse

Credit Card Interest Rates

We owe $35,000 in credit card debt. We recently received notices from most of the accounts the rates are being increased due to the current economic conditions in the U.S. Basically, the greed is rising. Finance charges on one are $44.97 out of a $53.00 payment. Now, the finance charge will be $48. Wow, I can get this account paid off in 20 years. Something has to bring this to a halt. Americans, all of us, need to stop paying. Just stop. Let the entire U.S. go into bankruptcy. You can't get blood from a rock.

By sailorgirl55 @ 08/25/09 11:23:46 AMreport abuse

BofA/MBNA

First they cut my limit from $20,000 to $12,500. I didn't care. Then they raised the rate from 9.5% to 24.99%! That got my attention and I paid the small balance in full. The closing date was the 3rd, the due date was the 23rd. They recieved payment on the 10th.Next month they tried to charge me $1.50 for the 7 days from closing to payment. I had a MELTDOWN on the poor kid in cust. service and the charge was removed. I will never use that card again.

By Whalewidow @ 07/21/09 03:15:02 PMreport abuse

Chase Minimum Payment Increase

Just received notice from Chase that my minimum payment is increasing from 2% to 5% as well. My husband was laid off in December and I have done everything I can to keep current on all bills, not missing one payment! I had to drop to minimum payments until he gets a job somewhat equivalent to what he was making (which is proving to be impossible). I called Chase and was told there is nothing they can do and maybe I need to see a credit counselor. I literally lost it with that idiot! My current interest rate is 3.99% and he is telling me to see credit counselor to lower my payment but increase my interest rate. Please for the love of God someone tell me how that makes sense? I have worked hard to stay current on my debt and not let the lay off affect me. My credit score is good and in the last (honest) 13 yrs I have NEVER been late on any payment, so why am I having to pay for all those people who have been irresponsible? At this point I am over being treated like this and told him to note my account that I am able to make the current payments at 2% but when they increase to 5% I will not be able to make another payment and they will have to send me to collections and write the $11,000 balance off. I'm having a hard time understanding why they are willing to make me default and risk not getting any more payments? Truly over this!

By KJ @ 06/29/09 09:11:30 PMreport abuse

chase credit card company's BS

6/22/2009. I received a letter from Chase credi cad company said that they will change minimum payment from 2% to 5% and raise interest from 8/1/2009.
I called Chase and talked their supervisor who said that I have to call back after it is effected. he said he can't say anything til he will see the changes.
I asked him to transfer my phone to proactive solutions department to talk to...
I need time to prepare and I never thought it will be happened to me. I'm keeping out-standing credit history many years.
Then, proactive solutions department, No one picks up the phone. It was automated system.
I gave up after wasting 20 min of my time.
They gave me only 39 days to prepare for 5% min payment which will be $850.00 monthly.
I can not afford to make payment.
$850.00 ( currently $340.00 monthly) for one card
payment every month? I wish I could pay off Chase,
But I can't. How could they possibly to do that?
I wish I could have big cash to pay off all credit debts.......
I feel like if i touch other person lately, I get burned and frastrated... It is so stressful country the America became....
By shijap 6/22/2009

By shijap @ 06/22/09 09:49:05 PMreport abuse

It's a minimum finance charge

With the avg. daily balance so low, that's obviously a minimum finance charge and the bank has to charge 64.20% to allow for the $1.00 minimum finance charge. Please learn to read your card member agreements and your full statements.

By Chris @ 05/18/09 09:59:11 AMreport abuse

Another Chase Horror Story

Yep, noticed last month, Chase doubled my APR from 8 to 16% for no reason-and they were very rude when I called to ask (nicely) why? No, I didnt call their mothers fat and stupid.
But, they did transfer my call to a voicemail. I hung up, immediatedly called CitiBank and got a new card with APR 0 until end of the year, transferred the balance of Chase and cut up Chase Card.
So Obama has changed credit card rules for NEXT YR....we are sitting ducks, at the mercies of the credit card companies until then. Why doesnt someone do something NOW?

By merijoe @ 05/10/09 03:14:50 PMreport abuse

Effective Annual Rate

Unfortunately, Howard, we can top this! My husband March staement on our Alaska Airlines card showed an effective rate of 80.64%!

By Mickey @ 05/09/09 03:05:11 PMreport abuse

Misrepresentation

Clark- I am really dissapointed in you. I usually trust you to tell the whole story. Obviously as others have pointed out you failed to do so in this instance. I really hope that you come clean on this and explain the difference between the effective and the corresponding apr. Honestly I have lost a little respect for you because of this. I am glad I came online to see the actual bill and see the rest of the story.

By Justin @ 05/09/09 12:32:50 PMreport abuse

credit card abuse

I gave up in January when Citibank tanked my credit even though I paid on time every month. I don't care anymore, they are going to get what I give them. As for Chase I hope they crash and burn, I will bring the marshmallows

By cindy miller @ 05/08/09 10:47:53 PMreport abuse

Chase

The recent Fed stress test is nothing more than another big scam by Washington. Fact of the matter is that the FDIC routinely has been conducting "monthly" stress tests on banks to test their stability for many years. While Chase may have "been one of the few banks" to pass the recent stress test the Fed's just had, none of them actually pass the test given by the FDIC

Chase is one of the worst offenders of interest rates and fee "jacking". Maybe not in this particular situation, but overall.

By John @ 05/08/09 10:34:58 PMreport abuse

Enough Already!

When one of my cards reached thirty five percent interest, I just stopped paying it. They are not willing to lower their rate so I can pay, not only the wild interest but the principal. I have not used this card in two years and the balance because of the interest has not dropped. I am 72 years old. Not planning on anymore purchases in my lifetime. Sue me. I don't have anymore money to feed the vultures!

By CF @ 05/08/09 09:21:36 PMreport abuse

Your Deceptive Post

Effective APR does not indicate the interest rate your paying!!! It's reflective of fees, as well. And when you start with a purchase of $18.70, it doesn't take much of a fee to come up with an effective APR of 64%. That said, I do think the actual rate in purchases of 27% is usury and should be reduced

By Brian Halla @ 05/08/09 09:17:43 PMreport abuse

Minimal Finance Charge

this happened to, My APR was up tp 87.8%, if u read the small print u will see that there is a minimal Finance charge of $1, that being the APR aplied for that month

By Dan @ 05/08/09 06:05:15 PMreport abuse

use cards wisely

I had a creditcard cutting party some yeasr ago. It feels great to not have cc debt. I still have a cc and use it occasionally for online purchases, but I always pay the balance via my online banking account as soon as I receive the ordered items

By _aleph_ @ 05/08/09 03:53:47 PMreport abuse

How did Clark miss this?

The 64.2% is the effective APR. Now if the corresponding APR was 64.2% then we have something to talk about.

By Cyberdine @ 05/08/09 03:15:02 PMreport abuse

Enough!

I recently came into enough cash to pay off all of my cards.. Because of the double-cycle billing fiasco, Chase charged me another $3.84 on an account that was paid off.. I sent them 400 loose pennies and now that balance shows -16 cents. Yes it cost me more in postage than that to send the pennies, but the satisfaction is well worth it! Screw them!

By WageWhore @ 05/08/09 03:03:19 PMreport abuse

Money and greed is this country-That's what happened

I agree 100% with JD in that some people have become dependent on CC which is money that they don't have. I've used a CC in the past but made sure I'd have enough to pay in full at the end of the month.

This country has placed a high value on money and material things in my opinion and this is what's being passed on to children instead of teaching values like living within our means, helping others and giving thanks for what we have instead of envying others for what we don't have.

I have family in Ecuador and from their comments can tell that they envy people in the US for the lifestyles but they don't know that alot of good is lost in the process when we only work for having material things.

Lupe

By Lupe @ 05/08/09 02:55:44 PMreport abuse

credit card limit decrease

yes one of those Mega banks did it to me too cut my credit in half (BA)

By nancy @ 05/08/09 02:49:49 PMreport abuse

Sears raises interest rate to 58%

Ok, so I thought it was bad that my Visa card company has stopped the practive of allowing consumers to request a small interest rate decrease for good payment and credit history with them, now they have started to slowly raise their interest rates to unheard of highs. Some cards, like my visa, have been doing it slowly, just a few points at a time. However, today SEARS tops my list, as I received my card statement today, (of which the balance is only $32.00), and they have raised their rate to 58%. I should mention that my credit score is over 750 and that I pay my cards on time and always pay the balance or close to it when possible. What power as a citizen do we have? Howard says that if we close the accounts that it will further damage our credit score, but how do you defeat this imoral practice?!

By j @ 05/08/09 02:08:54 PMreport abuse

cash is king

never forget these old saying... in god we trust, for everyone else, it's cash.

and, remember the golden rule...he who has the gold rules.

By brian @ 05/08/09 01:35:52 PMreport abuse

Get it right before you throw stones

If someone does not know how to calcuale an effective APR, they probably shouldn't libel one of the only banks that passes the stress test. This was clearly a situation where a low balance on a card that was assesed a $1 fee caused the effective APR to be abnormally high. The nominal interest rate ( which is what should have been talked about ) was
quite reasonable. But then again, that wouldn't be scare tactic worthy would it ? Clark owes Chase a big apology.

By Jay @ 05/08/09 12:47:22 PMreport abuse

Interest Rates

JD, I certainly agree with you in theory. It would be nice if everyone cut up the plastic. If we did, the power would be returned to us and the banks wouldn't be able to totally rip us off. But, there has to be a starting point. The only way this can be accomplished is for Washington to put a stop to the banks getting away with "usary". It won't stop everyone from cutting up their cards, but, I think a lot of people have learned their lesson and if we can just stop the "bleeding"and get consumers to a place where they can stop charging and start paying down their debt, it would be a good start. As it stands now, anyone already in debt, probably around 80% of the population, needs to have their debt stablized, where if they stop charging, they won't get further into debt simply by the banks "jacking" their interest rates up to 30%. Obvisously, if a person can't payoff the CC at 7%, even if they stop charging, their not going to be able to pay it off at 30-35%

What Congress has allowed the banks to get away with the last 15-20 years is beyond illegal, it's almost immoral. All so they can get re-electing with the donations from Wall Street and Banking.

Aint2 had a great point, about the fine state of South Dakota. In an effort to woo these giant financial firms (Citicorp) to South Dakota they allowed them to get away murder on the interest rates. With all due respect to people that live in South Dakota, why would any Corporation want to move their operations to SD??? Only one, because they relaxed the law to allow them to get away with this practice.

John

By John @ 05/08/09 10:33:54 AMreport abuse

It's a technicality

As others have pointed out, this is not a true 64% interest rate. It is probably the $1 minimum finance charge assessed on a very small balance. $1 on a $18 balance for a month is equivalent to about 66% per year, which is what we're looking at.

By MC @ 05/07/09 11:11:32 PMreport abuse

WE want a name

JD, it would be nice if everyone did what you asked, but it's not going to happen, coz most people live on credit cards and they just don't have the cash on hand.

By Guy @ 05/07/09 10:01:05 PMreport abuse

64% credit card

Based upon the Average Daily Balance, it appears that the caller was assessed the minimum finance charge of $1.00. When the minimum finance charge is assessed, the credit card company is required by Federal regulations to disclose the Effective APR which is higher than the nominal APR. Minimum finance charges are disclosed in the Schumer box.

By Chuck @ 05/07/09 09:53:10 PMreport abuse

64% Interest!

This is not a 64% interest rate. Jodie did not show the actual interest. If you notice their is a daily periodic charges column. It looks like he paid the card down in the middle of the month. His interest charges were higher at the beginning of the month on the higher balance making the overall rate look very high. It is very hard to judge something when all of the information has not been given.

By James @ 05/07/09 03:58:08 PMreport abuse

Bank

I'll tell you what happened JD. We elected Obama into office! We wouldn't be in this mess with the banks if we didn't bale them out. What a crock! I predict Obama to be a "one term" President. I won't vote for him that's for sure.

By Me @ 05/07/09 03:08:26 PMreport abuse

We want a name!

Likely a one-shot junk fee for something. We must wonder, what was the fee for? What bank is this? My guess is a balance transfer, given that the avg. daily balance is less than twenty bucks. But at 28% interest, who would want to carry something like that?

My two-cents: stop using these damned credit cards altogether and fire these turkeys! Whatever happened to cash on the barrel? Cash rules the day! I *always* get a cash-discount of at least 10% on major purchases and auto repairs, just for the asking. People end up paying twice what everything's worth then they use plastic. No wonder money is in such short supply!

Today I learn that Citibank is into us for $300 billion; BofA for $177 billion. Where will it end? I'll tell you where: it will end when Americans FIRE THESE TURKEYS. If everyone cut up the plastic and vowed to start spending their own money, you'd see a shakeup of epic proportions, and the survivors would serve customers for a change.

Who among us has the balls to cut up all their plastic? Has America been stripped of all sense of self-reliance and independence? Are we so weak that we can't survive without plastic and government handouts? What the hell has happened to this country???

By JD @ 05/07/09 02:58:16 PMreport abuse

64% Credit Card

Everybody relax - since neither the purchases or cash advance rates are showing that high, this means that there is probably a one-time fee this month (probably cash advance fee) which TEMPORARILY artificially inflates the APR. Next month, it will show 27.24%.

By Brett @ 05/07/09 02:44:10 PMreport abuse

The Supreme Court happily ruled in the 80s that banks could move their credit card operations to any state they chose. And several states, esp. South Dakota, happily removed any upper limit on credit card rates. So why are we surprised. But don't worry, the banks will now be solvent. Sadly, we won't be.

By aint2 @ 05/07/09 02:09:16 PMreport abuse

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May 07, 2009 -- Caller has credit card interest rate hiked to 64%!

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