Today I recieved a "Capital Purchase Plus Check" from cap one. Cap one stresses that this check does not effect your credit limit and will be paid off in four monthes. They also state that the APR is 0%, just a "low" monthly fee of $5.25. The check is written to me for the amount of $300 and my monthly payment is $80.25. Where this deal starts looking bad is when you calculate what the effective APR would be on that payment. My loan program tells me that the APR would have to be 28.99% to equal that payment. Also the fine print states that this payment is in addition to your normal credit card payment. Basicly cap one has made it self a loan shark. Watch out if you get a deal like this. Trevor
I got one a while back that was an installment laon for $1,839 or something wierd like that, low, low payments of $50 a month for 50 yrs or some such nonsense. They must think we can't subtract and divide. They insult my intelligence - that's one reason I don't like them very much.
You got to hand it to Cap 1. Their marketing efforts to find new sources of revenue is mind staggering. Not everyone is intelligent enough to figure out the APRs on these loan shark type loans. Cap 1 only needs a low percentage of takers to make this highly profitable. Hey, you have to find additional revenue from current client base to pay for those NCAA Bowl sponsorships and the 'no hassle' Plat. card commercials on prime time tv. Best regards, Mirage
Household did a similar thing with me. They sent me a check for $5000 and all I had to is sign and cash. The apr was only 22.99%. Yeah right.
On that note, a suit was filed in Illinois against Household for APR fraud. Trying to find more info and will post here when I get it. Best regards, Mirage
