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Chris Rosenberger
05-16-2012, 11:49 PM
A company offers a special very low interest rate if you make a large purchase & charge it to there store credit card. Then if you make a regular purchase on that card, it gets charged the normal loan shark interest rate. All future payments amounts over the minimum are applied to the low interest purchase first with a minimal amount applied to the high interest rate purchase.

I thought a few years ago the government passed a credit reform act disallowing this type of consumer ripoff. Am I wrong?

John C Lawson
05-17-2012, 12:54 AM
I went and looked it up, because I thought the same thing. They have to apply your payment to the highest interest rate charges only if you pay more than the minimum payment. Moral: add $10.

Chris Rosenberger
05-17-2012, 8:29 AM
That is the way I understood it was to work. The minimum payment due was $77 dollars. The regular purchase I made that month was 439.00. The payment I made was $700.
They only applied $30 to the regular purchase.
Where did you find the information?

Chris Rosenberger
05-17-2012, 11:18 AM
Problem solved. Thank you John.