Remember the Credit Card Reform bill that Obama signed into law last May?
"With this bill we are putting in place some common sense reforms designed to protect consumers," Obama said at a signing ceremony at the White House.
It was a proud day to be an American. Finally the government was standing up for the little guy.
For example, look at First Premier Bank Credit Cards. They were offering a $250 line of credit with a minimum of $256 in fees per year. But with the new law, fees were capped at 25% of the credit line.
So what did First Premier Bank do to abide by the new laws?
Here’s something you don’t see every day: A credit card with a $75 dollar annual fee, a $300 limit, a $29 penalty for being late or over limit… and an interest rate of 79.9 percent? Welcome to First Premier Bank, a sub-prime credit card issuer.
What the Credit Card Reform bill didn't do is cap interest rates.