Victoria’s Secret Sleazy Credit Card Language
Recently my girlfriend got a notice regarding a change in terms to her Victoria’s Secret credit card agreement. Victoria’s Secret store cards are held by World Financial Network National Bank. In reading these terms, I found some oddly worded sentences, that made it seem almost as if they were trying to slide changes past their women card holders. It mainly pertained to finance charges. (Emphasis mine).
14. FINANCE CHARGES
D. The Daily Periodic Rate of FINANCE CHARGE applicable to your Account will be computed by adding 21.74% to the value of an “Index,” and dividing by 365 (The corresponding ANNUAL PERCENTAGE RATE will be the Index plus 21.74%). The Index in effect for each Billing Period shall be the highest “Prime Rate” of interest as published in the “Money Rates” section of The Wall Street Journal for the calendar month preceding the month in which the Billing Period begins, rounded upward, if necessary, to the nearest .001% (“Index”). The corresponding ANNUAL PERCENTAGE RATE will not decrease below 24.99% nor increase above 24.99%. An increase or decrease in the Annual Percentage Rate will result in a corresponding increase or decrease in the amount of Finance Charge.
Effective July 1, 2010. The 24.99% maximum Annual Percentage Rate will be removed from your account. This means that the Annual Percentage Rate on your account can increase above the 24.99%, upon an increase in the Prime Rate.
In plain English, the APR on your Victoria’s Secret card will be 24.99%. That is, until the rate cap is removed on July 1, 2010 and it can be further increased. Better pay off that card each month unless you like paying 24.99% interest on all those fancy bras and underwear.
Oh, and you better opt out of receiving monthly paper statements or they’ll charge you $1 for each of those you want to receive.
I noticed that when I got my statement. And thought ‘Wow, what a way to charge more people for a low economy.’ Unbelievable. I think it was Kohl’s that sent me a statement even though I don’t owe anything, and they it said effective Feb 21, 2010 that would happen. Ironic, I received it yesterday and it was typed out the 18th. The companies are sneaky and money grubbing. Good thing I just got what I needed. No more.