First Premier Bancard, the sister card-issuing organization to Sioux Falls, S.D.-based First Premier Bank, is charging an annual percentage rate of 59% on cards aimed at consumers with lower credit scores.
The cards also carry a phalanx of fees. Card accounts carry an annual fee of $30 per year for the first year and $45 per subsequent year; a monthly servicing fee of $6.50 per month ($75 per year). Cash advances cost the card holder 3% (maximum of $10), late payments will cost $35 and returned checks will cost another $35.
The company has reported that over 700,000 consumers have obtained the card.