Retailers now charging upwards of 35%
interest on credit cards
KFMB-TV [San Diego CA],
by
Shannon Handy
Original Article
Posted By: NorthernDog,
7/9/2024 10:05:41 AM
SAN DIEGO — Interest rates on retail credit cards are on the rise, and the numbers may surprise you. Macy’s just sent letters to its card users announcing the interest rate on their Macy's card is jumping to 34.49%. Industry experts told CBS 8 the increase is part of a nationwide trend. “I mean, I follow this so closely that I'm not shocked, but on the face of it, yeah, that's a really high interest rate," said Ted Rossman, a senior industry analyst at Bankrate. Rossman says retail stores already have the highest APRs, and those rates have been climbing
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Reply 1 - Posted by:
Dodge Boy 7/9/2024 10:24:52 AM (No. 1752924)
And it is primarily our young people who live their lives buying goods online and kn credit. And racking up huge debt before they are even old enough to sign a contract. Sad.
14 people like this.
Reply 2 - Posted by:
Quigley 7/9/2024 10:35:43 AM (No. 1752929)
Thanks to Delaware law- right, Joke Bidet?
16 people like this.
Reply 3 - Posted by:
PChristopher 7/9/2024 10:39:13 AM (No. 1752933)
I'm sorry! Didn't we used to have usury laws in this country that companies were held to?! I wish I had a time machine that could take me back to the late 60's or the early 80's, cuz the 2000's are totally messed up (My original wording did not pass the censor, but I'm sure you can guess what it was)!
16 people like this.
Reply 4 - Posted by:
LC Chihuahua 7/9/2024 10:48:02 AM (No. 1752941)
The loan sharks will raise their interest rates.
10 people like this.
Reply 5 - Posted by:
mobyclik 7/9/2024 10:54:42 AM (No. 1752944)
Someone has to pay for all the bankruptcies caused by the credit card fanatics. ''I really can't afford this, but what the hell....'' (click)
8 people like this.
Reply 6 - Posted by:
Rather Read 7/9/2024 11:05:45 AM (No. 1752953)
I'm assuming these are store cards not Visa or Mastercard (which are bad enough). I have one store card and I use it very seldom and always pay it off. I am quite tight with money, you have to be nowadays.
9 people like this.
Reply 7 - Posted by:
cor-vet 7/9/2024 11:09:52 AM (No. 1752957)
I'm old enough to remember when we were taught that 12% was usury. If we can't pay cash, we don't buy it, or if we use a card, pay it off immediately. I have noticed that lately, statements are arriving on or after the due date, which triggers a very high late fee. Between the late mailing date and the highly efficient USPS (ha), it's almost like plan to make you late. Or a plan to get everything done electronically, the better to track your spending.
11 people like this.
Indeed, I just got a notice from Macy's that the interest rate on my card is a punitive 35%. Good thing I pay the balance in full when I charge on the card.
Othewise, Macy's, you can KMA. Closed many of your stores lately?
13 people like this.
Reply 9 - Posted by:
Catherine 7/9/2024 11:24:16 AM (No. 1752970)
I learned to live without credit cards years ago. You learn the difference between what you need and what you want.
10 people like this.
Reply 10 - Posted by:
DVC 7/9/2024 11:27:47 AM (No. 1752972)
Like gambling at Vegas, only fools use credit cards and leave them unpaid at the end of the month.
But Barnum was right.
10 people like this.
Reply 11 - Posted by:
Hermoine 7/9/2024 11:30:02 AM (No. 1752975)
It's really simple. Don't get their cards.
12 people like this.
Reply 12 - Posted by:
Maggie2u 7/9/2024 11:44:05 AM (No. 1752990)
We got a letter last week from Macy's about the interest rate at 34.59%. Couldn't believe it. Fortunately we have zero balance. For years our FICO score was 850 and then last year I had one late payment and it dropped to 750, unbelievable. I've managed to get it back up to 800 but I still can't believe one late payment could do that. My fault because I simply overlooked when a payment was due. (it wasn't our Macy's acct.)
FYI...Washington state had a law that interest rates could not be higher than 12%. Then several years ago, it was on the ballot to vote to do away with it. At that time Sears and Penneys gave the largest amount of money to get an initiative passed and our two largest banks, Rainier and Seafirst said they would leave the state if it didn't pass. Guess what. the intelligent /s voters voted for it so now we have these huge interest rates. Oh, Sears has gone bankrupt, Penney is on their last legs and the two banks? They're gone, bought up by larger banks.
9 people like this.
Reply 13 - Posted by:
MickTurn 7/9/2024 11:51:38 AM (No. 1752994)
AND you thieves can take the card and put it in yo Wazoo...SIDEWAYS!
7 people like this.
Reply 14 - Posted by:
Mizz Fixxit 7/9/2024 12:22:56 PM (No. 1753031)
Joe Biden has maintained a long term close alliance with credit card companies. MBNA, a bank holding company headquartered in Wilmington, Delaware, was Biden’s largest contributor for 20 years. MBNA was acquired by Bank of America in 2006. According to a 2008 article, “Biden's son Hunter was hired out of law school by MBNA and later worked as a lobbyist for the company.” According to the same article, Biden was a key supporter of a bill enacted by Congress in 2005 that “made it harder for consumers to get protection under bankruptcy.”
8 people like this.
Reply 15 - Posted by:
mc squared 7/9/2024 1:11:57 PM (No. 1753062)
The article said the rates were going up because of proposed regulation capping late fees to $8 instead of the customary $35 or so. The creditors don't want to lose a portion of their revenue so they're raising the rates. It's another case of the government 'helping' people.
Reagan's rule: 'I'm from the government and......'
10 people like this.
Reply 16 - Posted by:
ladydawgfan 7/9/2024 1:19:17 PM (No. 1753070)
When I was in college, the credit card companies would set up tables outside the student union and give cards to any student who wanted one, whether or not they had the means to pay them back. I was stupid enough and broke enough to get caught up in this scheme so when I graduated, I had not only my school loans to worry about but a multitude of credit cards that I struggled to pay.
I managed to get myself out of that mess, but it took a lot of hard work and sacrifice to do it. I don't have ANY credit cards now. The thought of holding one in present circumstances scares me silly. Even for "emergencies," then what constitutes an emergency?? When all you have is a hammer, everything is a nail!!
I'm with poster #9. If there is something I want in the heat of the moment, I put it on my wish list on Amazon and sit tight for a week. I usually end up deleting it from my list because it wasn't necessary after all.
7 people like this.
Reply 17 - Posted by:
commonsence 7/9/2024 1:57:16 PM (No. 1753090)
bad link
1 person likes this.
Reply 18 - Posted by:
DVC 7/9/2024 3:09:21 PM (No. 1753123)
We keep three credit cards active, and will immediately cancel any which try to charge us an annual fee. We use them all the time, and pay off the cards 100% at the end of the month. ZERO total cost, and a lot of convenience.
For those who don't have credit cards, you must not travel. You CANNOT rent a car without a credit card, and I am pretty certain that an attempt to rent a hotel room with cash isn't going to work in most hotels, either. I wonder if it is even possible to purchase an airline ticket with cash any more?
They are making it damned near impossible to get by without credit cards, but if you are really worried about your weakness and running up credit you can't pay, get a debit card. It's like an automatic checkbook. When the dollars in the account run out.....the card stops working, CANNOT run up debt, if that is your fear.
7 people like this.
Reply 19 - Posted by:
danu 7/9/2024 3:33:55 PM (No. 1753140)
this lunacy would make the Mob blush. our loyal bank sold up and sold out to the bank of canuckistan or suchlike.
3 people like this.
Reply 20 - Posted by:
whyyeseyec 7/9/2024 3:36:24 PM (No. 1753142)
This will go over well with kids who ran up huge college debt on a worthless degree, and are now surviving on their credit card...
4 people like this.
Reply 21 - Posted by:
snowoutlaw 7/9/2024 3:53:12 PM (No. 1753152)
So what, Visa and Mastercards can be over 20%. If you don't keep a balance you have 1-2 months to pay it off with no costs. If you can't pay it off you couldn't afford what you bought in the first place.
For the same new law capping late fees I heard some banks are planning to start charging for their Checking accounts. I believe this is all part of Biden's plan to "help" the little people.
6 people like this.
Reply 22 - Posted by:
JHHolliday 7/9/2024 4:14:33 PM (No. 1753166)
Like most posters here, I pay off my cards monthly. Only have two, Visa and AMEX. They are mostly for convenience. Our weekly grocery bill runs $150 or more (two people, thanks Joe) and I don't like to carry hundreds in cash around. Years ago as a struggling young couple with children, we ran up our cards then finally paid them off. It certainly taught me that debt can be toxic in the hands of too many people. These usurious new rates being charged by store cards probably mean bankruptcies are rising and they are looking for ways to soften the losses by sticking it to people who don't pay them off. Looks like big trouble coming for the economy.
5 people like this.
Reply 23 - Posted by:
montwoodcliff 7/9/2024 4:21:17 PM (No. 1753169)
It's called usury and No. 3 beat me to it. I barely read that Macy's notice, but think I saw that Citibank is behind the card. Another card they gave me was backed by AMEX, another wonderful outfit. Paying by cash is an option, but just think about how much lettuce you would have to be carrying around! Thanks FJB!
2 people like this.
Reply 24 - Posted by:
Muguy 7/10/2024 8:39:07 AM (No. 1753535)
Other than the threat of losing your life, you can get better rates from loan sharks!
1 person likes this.
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35% ! You would swear someone crazy was in charge of our economy,