Getting Carded

by Ron Daly 

It used to be that "getting carded" had to do with proving your age. Now, it's realizing your credit card has gone completely screwy. Whether it's jacking up interest rates, shifting due dates or monkeying with the fees, the big lenders are doing their darndest to card you and hoping you'll screw up so you have to pay through the nose to fix it. I've been carded, but then again I'm the kind of guy who can manage my money and maintain my credit rating. Where this kind of thing gets scary is when it comes to the unbanked or underbanked out there who don't have a lot of options when it comes to credit.

It's stories like this that really upset me - ones about subprime lenders that actually have the nerve to charge nearly 80% APR (click here to read the full story). 

Knowing that their customer base is already prone to credit errors and defaults, subprime lender First Premier is gaming the system ahead of new legislation in February that cuts down outrageous fees but, apparently, not an outrageous interest rate. 

Can no one out there reach the folks who might be thinking this card is their only solution? Isn't one of those cardinal rules for CUs that we should be serving the underserved and promoting thrift? There's nothing thrifty about paying a 79.9% interest rate. 

Recently, credit unions have been getting their share of good press with a focus on interest rates and credit cards. CNN Money correspondent Gerri Willis recently covered this same territory in her feature on CUs, highlighting fees and interest rates at the average credit union versus the average bank. The media is getting warm to the idea of doing personal business and managing money at a CU. Start using that good press to bring in new members. 

Tell us about some of the ways you've been helping folks that have been "carded" in the comments section.