Arkansas Blog

Think we could get McDaniel to go after the credit companies, the real userers? I'm paying 30% to HSBC, et al on a hell of a lot more debt than any check casher would allow me to rack up.

But, in all of Max's (& DoG's) wailing & gnashing of teeth about the check cashers I've never seen word one about the credit card sharks.

ARK. BLOG: The credit card companies are purely evil. The evil bankruptcy bill is their work. But here's the difference: They've obtained federal bypasses that allow them to legally charge confiscatory interest rates. Hateful though they are, there's no legal recourse save law changes. The payday lenders have been playing fast and loose, to put it charitably, with state law -- aided by state lawmakers and other elected officials.

Why in the hell would you even use a card with a 30% interest rate? You do have a choice. Get out the scissors and cut it up, now.

Also, those credit card terms aren't contrary to AR usury laws.

erm. Cuz I needed more than the check casher would lend & the banks just laughed at me.

"The lenders can continue to operate if they're willing to settle for 17 percent APR."

Have they considered how many more customers they might get at this rate? Seems like virtually all credit card rates, except on those cards issued in Arkansas, top 20-plus percent, even if you have sterling credit. Most also warn, in microscopic print, that they can charge as much as 35 to 38 per cent if you make the slightest economic bobble.
Bobbles can include getting caught a day late when a card company decreased the grace period from 25 to 20 days, then regularly took eight to ten days to get my statement to me AND eight to ten days to get the payment posted to my account.
Get your payment in the mail the next day and pray? Not in this house. Damn good reason to tell credit card companies to take a long hike on a short pier. Unfortunately too many people put up with it.
(Guess what? Call to cancel and you immediately and without asking get a supervisor who has the power to rescind the late charge, give you back the 25 day grace period and apologize for any inconvenience.)
Crooks, the lot of them, but you have to fend for yourself because so many of the credit card companies are headquartered in states -- Nevada, Delaware and North Dakota come to mind but I'm sure there are many more -- which allow this sort of nonsense and Congress is loath to interfere because of states' rights issues. Pure BS.
70%er, you might try to find a card that offers an introductory rate, but read the fine print, follow the terms to the letter, throw every extra penny at it and don't use the card anymore. If getting out from under means taking your lunch to work, cooking at home, re-examining your cell phone and cable or satellite usage, anything you can do to tighten your belt, do it.
And family has to pitch in too. Kiddies don't need a brand new car, cell phones or the latest thing to hit the stores, no matter how much they squall. It'll hurt for a while, but it'll be worth it. Been there, done that.

What took so long, you ask?

I'd venture a guess that most of his legal staff has been so busy doing pro bono work for the chicken houses getting sued by Oklahoma for dumping chicken shit (not Mike Beebe, the real thing) into our water. Now that the case is wrapping up, they'll have time to work on little stuff like this.

I think that no credit card company should be allowed to do business in Arkansas if they charge more interest than Arkansas laws allow.
Besides, there's a bank in Arkansas that only charges 7 1/2 percent interest.

70%er, Listen to Doigotta, he is providing some good advice. I hope you are able to make more than the monthly payment, or you will never get out from under that high interest rate. I once had a good friend that got so far into credit card debt that she could not buy a new car because no one would give he a loan, or a lease on a car. Her parents had to end up buying the car and she paid them back. She was 45 years old. And the said thing about it, almost all her debit was for clothes and shoes. She is still trying to recover years later.

To put things in perspective, today's action by Attorney General McDaniel is, indisputably, the most comprehensive and proactive action taken against payday lenders by a state official in the 9 years since the Legislature passed the law that shamefully allowed these outfits to set up shop legally in our state. Luckily, that law (which was written by the payday lending industry, by the way), the legislative equivalent of a boil on our state's collective backside, has at last been lanced.

Max is correct that federal law specifically exempts credit card companies from state usury laws. If you think credit card rates are too high, write your congressman and U.S. senator. There's nothing anyone at the state level in Arkansas can do about credit card rates. It's worth pointing out that the example cited of a 30% APR credit card is dwarfed by the 300% APR and higher charged in each and every payday lending transaction.

But the lack of state enforcement authority on credit card rates shouldn't preclude the state from taking action on financial entities it CAN regulate--namely, the payday lenders. Sayonara, leeches.

Which one, chasv? Simmmons is near that but you have to have "excellent" credit. A "good" rating might net you a slightly higher rate but still decent rate.

That pic of Dustin shows how he is still wet behind the ears. Man, we need older more mature men in posistions of most importants. Damn, he doesn't know the difference from democracy and communism by not throwing out a law the legislators passed in 2005 that is clearly communist.

That pic of Dustin shows how he is still wet behind the ears. Man, we need older more mature men in posistions of most importants. Damn, he doesn't know the difference from democracy and communism by not throwing out a law the legislators passed in 2005 that is clearly communist.

That pic of Dustin shows how he is still wet behind the ears. Man, we need older more mature men in posistions of most importants. Damn, he doesn't know the difference from democracy and communism by not throwing out a law the legislators passed in 2005 that is communist.

Simmons is it, Doigotta.
That pic of Dustin shows how he is still wet behind the ears. Man, we need older more mature men in posistions of most importants. Damn, he doesn't know the difference from democracy and communism by not throwing out a law the legislators passed in 2005 that is communist.

>>Also, those credit card terms aren't contrary to AR usury laws.<<

If you carefully notice when you "apply" for a credit card the application will clearly
say which state's laws apply. The card companies are located in North Dakota (I believe) where
usury limits are very high and terms of the contract between you and the cc company are
slanted heavily in favor to the cc company. The transaction between you and the cc company
is considered as having taken place in ND.

Until there is a change in federal law there is not much Ark's AG can do about cc abuses.
.

Payday lenders. Usurious "credit" rates. Okay. Let's take a look.

The MSM (print, TV, interactive) is driven by advertising urging everybody to aspire to a certain lifestyle, certain clothes and cars, certain flat-screen TVs, certain deodorants. Spend, spend, in other words. Consume!

Truth? Consumers' actual spending power has steadily declined in the past forty years. Jobs have disappeared: often outsourced to countries whose populations are grateful to work for $20 a day.

So MSM advertising fuels a constant, daily desire to keep-up-with-the-Joneses. Even though the Joneses occupy the top 5% of Americans.

Which in turn fuels the credit industry - including payday lenders.

Nobody NEEDS a flat-screen TV or a Prada purse. But, by God I can CHARGE it! I'll never even notice that I'm paying 50% more than the purchase price in interest because I can enjoy it all NOW!

In other words, I'm living beyond my means.

That's right, Razorbacks. Try this little experiment. Put all your credit cards in a lock-box at your bank, so they're not readily available in your wallet or pocket.

Carry only an ATM card. ONLY!

Does the thought frighten you? Then you've got a problem and you're supporting the "credit" industry to the tune of billions annually, because you, "Have to have it NOW," only you can't afford to pay cash for it.

Big ticket items like a home or car? Of COURSE you don't pay cash, unless you're in the top 1% bracket.

The rest of life? Wanna save big bucks? If you can't pay cash, don't buy it.

MSM advertising creates the desire: the "credit" industry creates the means. The means to keep you locked into an every increasing debt lifestyle.

Of course, if everybody realistically lived within their means, we'd actually see to what degree the majority of Americans have sunk economically, and how subservient they truly are to the powers that be who collect all that interest.

Except for people who live within their means.

I'm with Simmons too. Have been for 30 years. Like their rates.

But I'm fine with payday lenders. Like I'm fine with fortune-tellers.

Anybody who consistently overextends themselves financially needs some lessons in life-management issues - available free at social services agencies like the Family Services Agency in North Little Rock.

If somebody chooses to consult a fortune-teller to talk with dead relatives, fine. Pay up. Maybe it's worth it to you.

If somebody chooses to position themselves to need a payday lender, fine. Pay up. Maybe it's worth it to you.

Sure, I'd like to see a cap on payday lenders' (and banks, for that matter) usurious interest rates and "fees."

Better, I'd like to see Americans educate themselves on their financial habits, motivations, self-education and monetary practices. Living within our means would quickly reveal the TRUE state of the American economy.

The resources are out there. But it takes a bit more work than simply accepting the next credit card offer that arrives in your mailbox.

Amen, Norma.

I was ignorant in college, as I still am often today, and I got a wallet full of plastic which I promptly used used used. Along with my college degree, I had the joy of facing bankruptcy. Years later with good credit and a house earning equity (actually, right now, maybe it's not) I've adopted the system you just mentioned. It's debit only for me, no credit, unless it's a dire emergency. It's tough. I often turn down offers to join peers after work for drinks or dinner because it simply isn't in the bank. They all use plastic like there is no tomorrow. For some of them, financially, tomorrow will be very bleak.

I think it's caused me to suffer, as often these after work get togethers turn into tomorrows meeting topic. Maybe they're better for it, maybe I'm not very smart. Either way, I'll pass on the plastic.

CalmWriter -

Dr. Norma, here. (Somewhere between Dr. Ruth and Dr. Laura). God, do I identify with the problem you elicit. Namely, after-work socializing over drinks and / or dinner when you can't afford it and have to put it on plastic, thus elevating the actual price of your $4.50 scotch and water to $22.

Smoove move to decline these "parties."

The trick? To pre-think ironclad excuses for not participating. "My grandmother died and I have to do visitation in El Dorado tonight." That's good once. Frankly, you cannot continue killing off imaginary family members for long without let's-have-a-drink work colleagues gazing askance. Really, you can't.

What to do?

Simple.

Join them for after-work festivities! Just have a soft-drink or two! No dips-and-chips. No booze. "Nah, I just don't drink much." Simple.

Better? Establish street cred whilst sipping a single Coke. "Ever since my DUI, I hate to drink and drive." Also subliminally implants socially PC message.

Enjoy their company for the price of a Coke.

You're welcome.

Dr. Norma

How about a cartoon for this rainy day.....click on Cato

Well some truths. Why labor for that which perishes. That is not a question.
We, a nation has fallen into the ditch. The ditch is the idea of education which making poor people out of the majority of those that go to college.
We are not smarter, we as a nation is the dumbest nation on earth. We have been aclamated to the idea we have to work but in fact we do not. The business world has us busting our asses to work everyday so we can pay them taxes. Boy, what a setup. That is why communism went down the tubes in many old communist countries.. They saw what we are doing and they have come say boy that is exactly what we need in our communist country.
Jesus asked the question, "Is not life more that rainment, is not life more than meat." Of course it is but we are slaves to the system. Whether you are black or yellow or green or white, you are slaves to those powers that runs the system. Like Enron and worldcom which were nothing more that money vaccums cleaners. When they got caught the people like Cheneys and bushes and many other rich people who were dipping out of those company's vaults had to get it other places. So. where? The oil and gasoline that is where they are stealing us blind now.. sick ain't it. Nothing we can do but continue to let them rape up everyday. Don't feel good to get rape.

Jimmy Dean said, I don't know if he orginated it or not, but said, "Americans are the only people in the world that will borrow money they don't need to buy something they don't need to please someone they do not like."
We are suckers trying to keep up with the Jones'.
We were one time a great country but those educated people like the bush's and cheney's have an open checking account and have every intention of bankrupting America.
How much longer will it be before America starts to implode?
Those that be wants to take us back to a time when we work for fifty cents and hour.. How are they gonna do that?
By devaluating the dollar.

You want to understand credit card watch AETN tonite, 9:00 pm
"The Secret Life of Credit Cards". I've watched it before and it's
excellent.
Highly recommended to chasv.

Thanks elwood wish I had seen your comment early enough for me to see it.

Amen, Chasv.

Until you get to the part about "Jesus asked the question, 'Is not life more that rainment, is not life more than meat."" I guess you meant "raiment."

But it doesn't matter. Why are you introducing your religion into this thread?

It's like quoting the non-existent Tooth Fairy to make . . . WHAT? . . . point?

What on earth does Thor, Zeus, Jesus have to to with this topic?

Personally, I'm a big fan of Rumplestiltskin. But WTF does that fairy-tale elf have to do with payday lenders?

Thank you.

Normabates, everything is related. Yes, the word is raiment, I saw the mistake but I had already posted so and you know...
Credit cards tell a tale of the credit world ruining the lifes of many.. I know one particualr who life has been completle destroyed by those damn credit card companies. It is so hard to get out of debt with them.
They don't care if you get so deep in debt you can't pay your monthly payments.
Then maybe the payday lenders are not as bad for the country as the kids in the AG's office makes out.