Aspiring to Take Money from the Poor
In 1996, the Hanna brothers bought a controlling interest in CompuCredit Corp, joining other top executives who formerly worked at Equifax.
CompuCredit markets their Aspire Credit Card to those who have bad or no credit, and who are unlikely to find a credit card with any other company. At the end of 2005, CompuCredit had over 3.5 million customer accounts with an aggregate managed portfolio of $2.49 billion in receivables, according to the company's website. The company, which is located in Greater Atlanta, markets itself as part of the "New South's Economic Renaissance."
"I knew the annual fees were awful, but I really needed the money at the time. I got a $300 limit, but was immediately charged a $100 annual fee, $6.50 monthly fee, and a $19 account opening fee. Really, I only got about $175 in actual credit but a bill for $300," the source said.
"As months went by, I received more monthly fees and finance charges," the source continued. "In about one year I had already repaid what I borrowed but still was maxed out. And that's when I got the annual fee again. Now, I'm pretty much making payments every month only to cover the fees. I already paid back the principal forever ago, and I'm paying interest on fees, and fees on interest!"
"People also need to know about Credit Line Increase Fees. I once received a $100 credit line increase but was assessed a $39 fee for the increase," the source said.
"The worst thing was when I had a dispute with the company. The customer service reps, who all sound like they're in India, were rude and would not put me in touch with a manager. I called the President of Columbus Bank and Trust (CB&T)-which issues Aspire Visa-after an extensive web search, though, and got it straightened out."
The President of CB&T, Steve Melton, is Director of the Columbus Chamber of Commerce and serves on the Board of the United Way, in additional signs of corporate-social-political entanglement.
Here are just two of the many complaints posted on the Internet about Aspire Visa:
"Aspire had sent me my new card along with my terms and conditions. On it was stated no annual fee and a 12%APR. I still hadn't used the card, but when I received my statement I had been charged a $59 annual fee, and over 18%APR. I was very upset so I spent days trying to call them. I could not reach anything other then a automated machine over and over," one customer told the RipOff Report.
"Where do I begin? I feel as if this company has been screwing me over since the beginning".Like many, I believed that making the minimum payment would be all right, but it wasn't. I was paying more and more every month. I currently pay a 36.75% interest rate that continually goes up".I have a list of other complaints about this company too. I've written the Attorney General's office in both Maryland and Georgia about this company's business practices and am waiting to hear back from them. I'm in debt with this company up to my ears, they have harassed me at my workplace with nasty and threatening phone calls," another customer said.
These types of practices have an adverse impact on the ability of low income Americans to keep their finances in order.
According to a 2004 Gallup Poll, families with an annual income below $20,000 were paying 14.3 percent of their income on credit card debt.
Ties to the Christian Right
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