Discover Card Complaint - Loan Shark Interest Rates By Discover Card
I just received a summary of changes from Discover Credit card. They are increasing all their fees and interest rates regardless of the fact that I am a good paying customer. Let me give you one example: Their Annual Percentage Rate For Cash advances: The change."we are changing the standard APR for cash advances from a fixed rate to a variable rate. Your standard Apr for cash adavances will be a variable rate equal to the Prime rate + 20.74%"Thus borrowing from them by taking a cash advance will be paying an annual interest rate of about 25% WOW!!!!! BORROWING FROM THEM IS AS HIGH AS SOME LOAN SHARKS WOULD CHARGE YOU!!!! DISCOVER CARD IS CHARGING AN UNCONSCIONABLE RATE OF INTEREST.
For this reason, I am reducing my use of their credit card and I suggest others to the same. THERE IS NO JUSTIFICATION FOR CHARGING CUSTOMERS WITH GOOD CREDIT SCORES THESE UNCONSCIONABLE INTEREST RATES.
FEDERAL LAW SHOULD BE CHANGED TO MADE THEIR INTEREST RATE CHARGE USURY AS IS THE CASE FOR THE LITTLE GUY IN CALIFORNIA: CALIFORNIA EXAMPLE:When trying to determine a fair interest rate to charge, it is important not to run afoul of California's usury laws. Usury is defined as the charging of excessive interest on a loan. Many states have usury laws that cap the rate of interest an individual and private lender can charge for loans. Pursuant to California law, the maximum interest rate an individual may charge on a loan primarily for personal, family or household purposes is 10% per year on the unpaid balance owed.