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Pretty sure they're breaking the law regarding the 2009 CARD Act. It took a search on that page for % to find the actual APR, which is 28.24% -- That was the 26
by dclaw 7y ago
Pretty sure they're breaking the law regarding the 2009 CARD Act. It took a search on that page for % to find the actual APR, which is 28.24% -- That was the 26th result on the page out of 38. The first 25 being provisions regarding their 5% back.
The APR is required to be prominently displayed so consumers can do their due diligence on deciding on a card.
But whatever, obviously Amazon is getting into the slave credit business. Like they care, and like anyone would bother holding them accountable.
- BonesJustice 7y agoYeah, I don't think burying it in the ninth paragraph of the Terms could be reasonably called 'prominent'. For that matter, the landing page for the Apple Card shoves it into a footnote. Seems like a case of "tech company trying to act like bank has no idea how to comply with banking regulations".
- beshrkayali 7y agoIt's highly unlikely that Amazon or Apple "had no idea how to comply with banking regulations".
- supergauntlet 7y agoBoth Amazon and Apple have law departments larger than most large startups. It was intentional. They know nobody will do anything. So really, it's a case of "tech company pretends to be incompetent at pretending to be a bank."
- sharkweek 7y agoSign up X customers and make Y dollars. Get fined Z dollars for breaking a regulation. If Y > Z, congratulate those responsible.
- deleted 7y ago[deleted]
- willart4food 7y ago+/- TOO_BIG_TO_FAIL
- blackoil 7y agoWe should also factor in. Legally Signup n customers and make W dollars. It should meet Y-W > Z
- dragonwriter 7y agoThe landing page is neither an application nor a solicitation under the applicable federal regulations, so isn't covered by the prominent disclosure requirements.
- mNovak 7y agoThe tech company scarcely ever "acts like a bank" -- they typically partner with a bank, drive users to it, and split the profits. In this case the bank is Synchrony Bank, which is behind many many 'store cards' (Go over to www.synchrony.com and hover over 'Find Account'. Look at all those partners!)
- dev_dull 7y ago> But whatever, obviously Amazon is getting into the slave credit business. Like they care, and like anyone would bother holding them accountable. I hear this kind of argument from the same people who say the government shouldn’t be telling people they can’t do recreational drugs, or who to marry, or what to do with their bodies etc etc — that they can decide for themselves. ... but the same people can’t be trusted with a high interest credit-building card??
- CodeMage 7y agoAre you really failing to make a distinction between individuals and corporations? Or is there something in your argument that I missed?
- javert 7y agoWhy should there be a distinction? People shouldn't magically lose rights because they ban together as a corporation instead of acting as individuals.
- CodeMage 7y agoNo, I actually misread the comment in question. I thought @dev_dull was saying that people who don't want the government to limit individual freedoms were the same people who want the government to regulate corporations. After re-reading the comment, I can see that this wasn't the message. However, there's still the fact that @dev_dull is not distinguishing between people arguing about government restricting individual freedoms and government regulating corporations. It's not about whether people can be trusted with high interest cards, it's about whether corporations should be allowed to set any interest rate they want.
- tssva 7y agoPeople gain some rights and protections when they ban together as a corporation. It is not unreasonable to expect them to give up others in exchange for the ones they gain.
- ceejayoz 7y agoThe APR is very prominently displayed during the application process. Does the CARD Act require it on the landing page specifically?
- cm2012 7y agoNope, looks like they are fine.
- mpolichette 7y agoI agree... why is this a top story on HN? Am I missing anything or is this just: "Amazon offers a credit card w/ no annual fee... like almost every other company"
- dsr_ 7y agoThat's not a credit card. The credit limit is equal to the deposit you make.
- djsumdog 7y agoThen why is there an APR. Does it eventually go from pre-paid to credit? Nothing about this makes sense.
- ng12 7y agoIt's not prepaid, it's a deposit. It usually gets refunded after you've gone some amount of time without missing a payment.
- astura 7y agoIt's not prepaid, its secured. It's exactly like requiring a security deposit on an apartment. You still have to pay rent every month, but the landlord holds onto some money in case you stop paying rent. In this case the lender holds onto some money in case you stop making payments. You still have bills, you still must make payments on time, you still have the option of only making minimum payments and carrying a balance. The collateral you deposit is only returned when you close the account or the account is upgraded to a non-secured card.
- ng12 7y agoThey're called secured cards, and they're very common. My first card was secured, it's a way to get access to a functional credit card (purchase protection, credit reporting, etc) with bad or non-existing credit.
- 7y ago
- DarkStar851 7y agoSure it's required and they should have to comply, but this is a secured LoC, so there's no interest to gather in the first place. Unless I'm grossly misunderstanding this? That's a stupid high APR, but you should effectively have a bill of $0.
- aeternus 7y agoIt really is the greatest business plan ever though. They figured out how to loan money at 28% APR without actually having to loan out any money. Very impressive.
- dwild 7y agoThey also make the credit card fee from the merchant!
- munificent 7y agoThis has to be the moment capitalism finally jumped the shark: 1. You give a business some of your money. 2. Business gives you some of it back. 3. Business charges you insanely high interest on the amount they gave you back, until you return your money back to them. 4. Profit. So much profit.
- prostoalex 7y agoSecured credit cards have been around for quite a bit, but they're far from profit centers, which is why they're hard to get from major large banks and rarely advertised. The only reason someone would apply for one is to build credit, and missing the grace period while subjecting oneself to high APR is pretty much the worst thing one can do at that point. It's worse than not getting the card at all.
- astura 7y agoSecured cards work exactly like non-secured cards, the only difference is the bank holds onto collateral, usually equal to your credit line. You still have a bill to pay, minimum payment, due date, you can pay the minimum and carry a balance, rack up late fees, etc. The collateral is only returned to you when you close your account or upgrade it to a non-secured card. You don't use the collateral for the monthly bills, just like if you rent an apartment you don't use the security deposit to pay the monthly rent.
- paulcole 7y agoCan you show me where in the text of the CARD Act it must be displayed on the landing page? From my reading: > [the APR must] be placed in a conspicuous and prominent location on the billing statement https://www.ftc.gov/sites/default/files/documents/statutes/credit-card-accountability-responsibility-and-disclosure-act-2009-credit-card-act/credit-card-pub-l-111-24_0.pdf https://www.ftc.gov/sites/default/files/documents/statutes/c...
- dragonwriter 7y ago> The APR is required to be prominently displayed so consumers can do their due diligence on deciding on a card. On applications or solicitations (the latter being restricted to firm, no-application offers, not advertising for applications.)
- javert 7y ago> But whatever, obviously Amazon is getting into the slave credit business This is the age-old "moneylending is evil" trope. Are you sure it is evil, though? I don't think so.
- behringer 7y agoIs it Amazon? Yep. Then it's probably not very nice.
- robert101 7y agomessage Trust for all types of credit report. He is the real deal TRUSTREPAIRSERVICE At wORKmAil DoT COM, This is his contact; +1 407 917 2120. Message him now and thank me later!
- webninja 7y agoThey should display the APR but this is still better than the alternatives. I tried out SelfLender to build a credit score with a $500 secured loan because I had a thin file. I paid about $550 for this loan and I didn’t receive back my principal afterwards. (They illegally kept all $550 and kept claiming they sent me a $500 check.)