I have been having problems with this credit card company for years. I remember about 5 or 6 years ago when I got a notice of my payment being late. I had sent it in plenty of time and did not know why it would have been late. I can't remember exactly when but I got a letter stating that a class action law suit had been filed against First Card and I was included because I had late charges to this company. It seems that First Card had been accused of "short-stopping" payments. That is they had an office I think it was in Kentucky where the payments went they were held there a few days and then sent to payment office and were of course arriving late at the payment office.
First Card of course denied these charges but did not want to go to trial so they setteled this class action suit for something like 35 million dollars as I remember it. This way they did not have to admite that they had done anything wrong. I got something like 80 cents refund on the $29 late charge I had been charged. If they were willing to pay me 80 cents for taking 29 dollars of my money I always wondered how much money they made form this alleged scam.
Late charges are the most profitable business in the US.
Today on top of the late charges over the limit charges they are able to raise your interest rate because you have an ugly wife. One of the biggest scams on the American public are these credit cards sending cards to young people right out of high school with a $500 limit. A very large percentage of these kids get in over their head very quickly as they do not know how to handle credit. When the $500 limit is reached and the $29 late fee and $29 OVER THE limit fee are added every month it soon gets out of hand and they are hooked. After it gets to about $1500 which at 25% interest does not take long the Bank writes off the loss on its taxes and sells the note to a loan collection agency. So as you can imagine the banks are not paying much income tax with these huge "losses" on there credit card business. This is where the American people are being ripped of again.
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