Nation's 'worst credit card' could be history

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Nation's 'worst credit card' could be history

Updated: July 23, 2011 - 5:02 PM

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New credit card regulations have outlawed what's been dubbed America's "worst credit card."

Last year, Whistleblower described how Consumer Reports had awarded that infamous title to the First Premier Bank MasterCard, which charged up to $175 in fees for a $700 credit limit. First Premier Bank of Sioux Falls, S.D., responded that the card was designed to allow people with bad credit to repair their credit histories, so in the bank's view, it wasn't fair to compare it to cards available to those with better credit.

In its 2009 reform of credit card practices, Congress decided the terms of the Premier Bankcard MasterCard weren't fair to anyone. New regulations that kick in this year limit the upfront fees to 25 percent of the credit limit -- but First Premier Bank's upfront fees amounted to as much as $95 plus up to 25 percent of the credit limit, which ranged from $300 to $700, the Argus Leader of Sioux Falls reported Friday.

The Argus Leader reported that First Premier Bank filed a federal lawsuit to overturn the limits on upfront fees. While the feds are likely to defend their new rules, that doesn't mean they are sitting idly by as the workers who peddled those cards lose their jobs.

Last week the U.S. Department of Labor announced it had given a $379,500 "National Emergency Grant" for "training and employment services to about 200 workers affected by the closure of the Premier Bankcard call center in Spearfish, S.D."

"This grant will help dislocated workers by equipping them with the skills necessary to obtain good, stable jobs in the area's high-growth industries," Secretary of Labor Hilda Solis said in a statement.

Children's lamps recalled

Target Corp. announced last week it's recalling about 13,000 Circo Children's Task Lamps because the light bulbs could accidentally become glued in place. That means when someone tries to change a dead bulb, it could shatter, posing a laceration hazard.

Target told the Consumer Product Safety Commission it received "six reports of glue on the lamp socket melting and migrating into the bulb area of the socket." The Minneapolis-based retailer hasn't had any injury reports.

The four styles of the lamps, which have designs called "Striped, Sport, Dot or Flower Dot," were sold in Target stores nationwide and online at Target.com between January and April of this year. They retailed for about $13.

For more information, contact Target at 1-800-440-0680.

THE WHISTLEBLOWER TEAM