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Mr.Kitchen
18th March 2004, 10:11 PM
What a suprise.
This is an email my school sent me today

This message is being sent using E-mail to Groups ( UM Students ).

What does paying your cell phone bill have to do with the
interest rate on your credit card? Maybe more than you think?
Under a clause called "universal default," some credit card
companies are hiking the interest rate (to over 20%!) for
cardholders if they pay ANY of their bills late. That includes
your cell phone bill, your apartment rent, even a bill from
your friendly family dentist! Here are two things you need
to do to avoid this unwelcome event:
1. Understand the cardholder agreement before signing up
for any credit card.
2. As much as possible, pay all your bills as soon as you
receive them (mail them at least 10 days before the due date
- or pay electronically).


This FinMan Tip-of-the-Month is provided by your financial
aid office and http://www.nelliemae.com.

Office of Financial Aid
finaid@olemiss.edu
1-800-891-4596

I want to know how that can be considered even remotely legal. It completely disgusts me.

Badger
18th March 2004, 10:29 PM
It can be considered legal because the cardholder is not forced to get the card in the first place. When they do get the card, it is based on the conditions of the issuing company. If the company changes the rules, the cardholder can cancel their card if they wish.

And no one forces the cardholder to in fact use their card at all.

The cardholder is buying the service. It's up to them to be sure of what they're buying.

I'll agree with you that I think the rates cards charge are disgustingly exhorbitant, but if that's what the market will bear, I'm not going to second guess them.

Jon_in_london
18th March 2004, 10:53 PM
What Badger said.

If people are so achingly fecking stoopid that they use a 31%interest storecard thats no problem of mine and I dont want my taxes being wasted on trying to stop idiots from being idiots.