Debt Consolidation Depot
Debt Consolidation & Financial Information Resource Center
March 10, 2004
To: National Desk
Contact: Mia Freis of Consumers For Responsible Credit Solutions,
202-354-8270
WASHINGTON, /U.S. Newswire/ -- Consumers For Responsible Credit Solutions (CRCS),
a national advocacy group representing consumers benefiting from credit
counseling, today blasted the "Aspire Gold Visa" which saddles already
troubled consumers with an annual interest rate as high as 41 percent.
"A 41 percent interest rate on a credit card is simply abusive," said CRCS
Executive Director Michael Barnhart. "If someone has such a poor credit
rating that it requires a 41 percent interest rate to approve them, it's
probably safe to assume they've already got such serious credit problems
that another credit card will only make things worse. To bait someone with
poor credit with another credit card and stick them with such an outlandish
rate is simply irresponsible.
"This is what happens when we lack national standards for interest rates for
credit cards," added Barnhart. "It allows already troubled consumers to be
preyed upon."
According to story on the Aspire Visa on Cardweb.com, "Notwithstanding a
current 4 percent prime rate, you could pay an APR as high as 35 percent for
a major credit card. Miss payments and the rate could go as high as 41
percent. CompuCredit and Columbus Bank & Trust have restarted marketing of
the "Aspire VISA Gold," targeted at consumers with weak credit scores. The
card carries a minimum interest rate of 27.75 percent. However, applicants
with lower scores may be charged a minimum 29.75 percent annual interest
rate, or a minimum 35.00 percent annual interest rate. Cardholders who
become delinquent face a minimum interest rate of 33.75 percent, 35.75
percent, or 41.00 percent. But, all the interest rates on the "Aspire VISA
Gold" are variable. If the prime returned to 9 percent, the annual interest
rate on the highest priced "Aspire VISA Gold" would hit 45 percent. After
all, it's a 'Gold' card."
Consumers for Responsible Credit Solutions (CRCS) is a nationwide group of
consumers who have benefited from credit counseling, joined by academics,
government officials and pro- consumer organizations. CRCS' mission is to
represent consumers who have benefited from credit counseling, in order to
help other Americans successfully manage debt and avoid bankruptcy. CRCS
serves as a source of independent, balanced information on debt management,
a liaison with the credit counseling industry and a voice for consumers on
industry issues. For more information, go to http://www.responsiblecredit.com.
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