Cross Country - I just got their offer - see this

Posted by BeenThereStillDoingThat (24.187.170.238) on June 19, 2004 at 10:01:41:

In Reply to: MN AG's complaint against Cross Country posted by Bob3 on June 19, 2004 at 00:27:46:

This snip from the complaint it 100% true. It was in the offer I got this week:

11. Cross Country offers these consumers credit cards that charge high interest rates
(usually over 20 percent), with high “origination” or processing fees, and annual membership
fees, often combined with low credit limits. These fees, and their associated finance charges,
may consume half or more of the consumer’s total credit limit within the moment that Cross
Country issues the card. For example, Cross Country has offered consumers a credit card with
credit limits as low as $200 to $350, for a $100 origination fee and a $50 annual membership fee.
For other cards, Cross Country has charged an annual membership fee of $120, (paid in $10
monthly installments) in addition to a $100 application processing fee.

12. There is no grace period for finance charges, which start accruing on the fees and
other charges immediately.

13. Consumers are frequently unaware that they will be charged these fees. They
often remain unaware of these fees and the finance charges on them until they receive their first
billing statements or receive their first collection calls (by which time their payment is also
considered late by Cross Country, resulting in a late fee). Many consumers are also unaware that
Cross Country will charge these fees to their accounts as soon as their applications are processed,
even in some cases prior to the time the consumer has decided to accept the card by signing and
activating it. Thus, consumers have incurred over-limit fees on their first statements, or over-
limit fees and late fees by the time they are aware that they even owe a payment, when they have
had the card for less than two months.

14. These over-limit and late fees, plus the constantly accruing finance charges on all
of these fees and charges, consume more of the consumer’s already-small credit limit and/or
push the consumer further over-limit and further behind in payments as the consumer’s
minimum payment due grows in size. Thus, the consumer is faced with a steeply escalating debt
which for the typical sub-prime credit cardholder is very difficult, if not impossible, to manage
and pay off.

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