Where there’s a will, there’s a way.  People with bad credit often think their options are limited; so companies catering to people with bad credit will almost certainly take advantage.  First Premier found a loophole in the Credit Card Act of 2009, which was supposed to protect consumers.

 Loophole = The Act does not cap the starting interest rate for a new card.

This company, known for marketing credit products to people with low credit scores, tested profitability of interest rates and came to this conclusion:  “We also tested it at 23%, 33%, 45%, but 59.9% is the one that shows the best performance” according to Miles Beacom, CEO, in a recent CNNMoney article.  It’s unbelievable that this statement was made without a level of consciousness about the impact on consumers.  Sadly even with the new legislation in place, consumers are still at risk when it comes to predatory lenders and ridiculously high interest rates.  Don't become a victim - read the fine print.