Monday, March 23, 2009

Bailing out banks

I think we the U.S. taxpayers should demand that the banks get the exact same treatment we get when we apply for a loan. A little taste of their own medicine just might make them rethink their policies. First before they get one nickle they must fill out a lengthy form stating all their income and expenses just as we must. And since they have made the financial mistakes and destroyed their credit rating over the last couple of years we'll have to charge them the highest rates for their loan. This isn't the worst example I could find but it should do. And since they are a high risk we'll have to charge the default rate of 29.99%. They should be more than appreciative that we didn't charge Pay Day loan rates which multiply weekly. If they don't like these rates they can just shop around. Maybe another country would make them an offer but I kind of doubt it seeing the damage they've done to other countries.

Annual Percentage Rate (APR) For Purchases
0.0% until the last day of the billing period ending during April 2010;* then the standard APR, a rate between 10.99% variable and 18.99% variable
Other APRs
Balance Transfers:
Offer A : 0.0% until the last day of the billing period ending during April 2010;* then the standard APR for purchases
Cash Advances: 23.99%
Default Rate: Up to 29.99%*
Variable Rate Information
The standard purchase APR may vary monthly and equals the Prime Rate plus an amount between 7.74% and 15.74%.†
For billing periods ending after May 1, 2009, the default APR may vary monthly and equals the Prime Rate + up to 27.99%, but such rate will never exceed 29.99%.
Grace Period for Repayment of the Balance of Purchases
At least 25 days when you pay your balance in full each month
Method of Computing the Balance for Purchases
Average Daily Balance (including new purchases)
Foreign Currency Transaction Fee
None for billing periods ending on or before May 1, 2009; 2% of the U.S. dollar amount of each purchase made in a foreign currency for billing periods ending after May 1, 2009.
Annual Fee
Minimum Finance Charge
Other Fees
OFFER A : 3.0% for each balance transfer made under this offer, with a minimum of $0.
CASH ADVANCE TRANSACTION FEE: 3% for each cash advance, with a minimum of $5 and no maximum. LATE FEE: $19 on balances up to $250 and $39 on balances over $250. OVERLIMIT FEE: $15 on balances up to $500, and $39 on balances over $500.


Tom Harper said...

I like your plan, but I think we should charge them payday loan rates. And if they're one day late with a payment, two burly guys named Vinnie and Antonio will be paying them a visit.

Did you read about AIG changing their name? Yup, that'll solve everything.

Demeur said...

Of course that's what criminals do. Did you hear that Blackwater changed it's name to Xe?

BBC said...

I have little to do with banks anymore. But my Wells Fargo credit card has a very fair interest rate on it, I think.

6.65%, better than many people are paying on home loans. A cash advance is 20.99% though.

Not that I care, I've never gotten one.

I just use a credit card at times because it's convenient, mostly I just deal with cash.

I figure that if I don't have the money I shouldn't be buying things.

BBC said...

I modified an LED light that I bought last year. SPIRITS PROJECTS