Listen To This Woman!
Via Lambert at Corrente, a post by the goddess of financial clarity, Elizabeth Warren: Three Myths about the Consumer Financial Product Agency.
Go and read it in full, as she does her usual great job in explaining why we need the CFPA.
I got an example of what she is discussing in the mail yesterday with an offer of a pre-approved credit card. The draw was 4.12% over the WSJ Prime Rate as the interest rate.
That was the large print, but in the fine print you discover that the actual rate will never be lower than 9.87%, which is a bit higher than the 7.12% rate based on the current Prime of 3%, and in even smaller type you discover that by “Prime Rate” they mean the highest daily Prime Rate on any day in the last three months.
Of course, all disputes will be settled by arbitration and you don’t actually receive the “agreement” that covers the card until after you agree, and you are agreeing that they can violate your privacy without any recourse, and make robo-calls to you.
What scum! By the way, don’t try reading one of these things without an illuminated magnifier, as they cause eye strain and headaches.
