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Thread: AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

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    Obvious AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

    By Jennifer Earl | FOXBusiness




    Sen. Bernie Sanders Opens a New Window. and Rep. Alexandria Ocasio-Cortez Opens a New Window. are apparently teaming up to take down Amazon's Opens a New Window. newest credit card for Prime members.

    Amazon announced Monday Opens a New Window. it partnered with Synchrony Financial to create what it considers the "Amazon Credit Builder" Opens a New Window. for subscribers looking to build or rebuild their credit scores. Cardholders will get the same perks as the Amazon Store Card — such as 5 percent back for online purchases and no annual fee — but customers must be Prime members, paying Amazon's annual $119 membership fee.

    Those who are accepted for the Amazon Credit Builder will have to make a security deposit within 60 days to receive a “welcome gift card.” The deposit will be refunded if someone closes their account or upgrades to the Amazon Store card. Those who are accepted but decide to opt out won’t have their credit file impacted by their decision.

    While some have applauded Amazon's latest credit card launch, others have questioned whether it will really benefit the unbanked or underbanked.

    Sanders, in particular, was quick to blast the e-commerce giant's promotion of the "Credit Builder," pointing out it has a very high — 28.24 percent — interest rate.

    "Can you believe it? Amazon is issuing credit cards with 28% interest rates to 'help' people with bad credit," the Vermont senator, a Democratic frontrunner in the 2020 presidential race, tweeted on Wednesday.

    The 77-year-old vowed he and Ocasio-Cortez would destroy the new card.

    "This kind of greed makes the poor even poorer and @AOC and I intend to outlaw it. Corporations will have to survive on a 15% cap on interest rates," he continued in the tweet, which Ocasio-Cortez later retweeted.

    However, the self-proclaimed Democratic socialists aren't the first people to point out the high interest rate.

    Ted Rossman, CreditCards.com’s industry analyst, acknowledged earlier this week that it was a "risk" to be aware of. But he said cardholders will benefit from the card as long as they pay their bills on time.

    Ultimately, Rossman said it's a "solid option" for people who are new to credit or aiming to improve their credit.

    “This is a very unique card, between the secured nature, the 5 percent cash back offer and the two different flavors of 0 percent interest (either 12 months of equal payments or 6/12/24-month 0 percent periods for select purchases),” Rossman said. “If used properly, this card can help you improve your credit while saving on interest or pocketing an attractive cash back return on items you would (hopefully) buy anyway.”

    Synchrony Executive Vice President Tom Quindlen told CNBC Opens a New Window. the new card enables financial group "a new segment" of the market

    “It’s putting credit in the hands of people in a responsible way,” he insisted.

    This isn't the only time Amazon has been targeted by politicians this week.

    On Tuesday, former Vice President Joe Biden threw shade at the company Opens a New Window. for "not paying a single solitary cent" in federal income tax Opens a New Window. for the second year in a row.

    Fox Business' Katherine Lam contributed to this report.

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    Mr Magoo RBP's Avatar
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    I'm torn on the 15% interest limit. It seems very reasonable, but it also cuts options for people who may need it. They seem to assume they same risk profiles will be eligible for credit at 15% that are at 28%. They won't.
    I wanted to be a Monk, but I never got the chants.

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    #DeSantis2024 Teh One Who Knocks's Avatar
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    If you're a poor credit risk, the interest rate is ALWAYS higher for you than for someone with a good credit score. What don't Bernie and AOC understand? Amazon is going to be offering credit to a group of people that will more than like have a lot of defaults, so like any lending institution, they have to protect against that risk, and that protection comes in the form of higher interest rates. And I'm sure if you are a good credit customer with them, you can get that interest rate lowered, or have the account transferred to a normal Amazon credit card.

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    Quote Originally Posted by Teh One Who Knocks View Post
    If you're a poor credit risk, the interest rate is ALWAYS higher for you than for someone with a good credit score. What don't Bernie and AOC understand? Amazon is going to be offering credit to a group of people that will more than like have a lot of defaults, so like any lending institution, they have to protect against that risk, and that protection comes in the form of higher interest rates. And I'm sure if you are a good credit customer with them, you can get that interest rate lowered, or have the account transferred to a normal Amazon credit card.
    Because they're fucking idiots, that's why.


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    Hal killed Tormund! Pony's Avatar
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    Quote Originally Posted by Teh One Who Knocks View Post
    If you're a poor credit risk, the interest rate is ALWAYS higher for you than for someone with a good credit score. What don't Bernie and AOC understand? Amazon is going to be offering credit to a group of people that will more than like have a lot of defaults, so like any lending institution, they have to protect against that risk, and that protection comes in the form of higher interest rates. And I'm sure if you are a good credit customer with them, you can get that interest rate lowered, or have the account transferred to a normal Amazon credit card.
    Opens a new window

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    Sultan of Slit fricnjay's Avatar
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    And so it starts. This is socialism vs capitalism at its core. Amazon is not breaking any laws and are very upfront with the purpose and over all details of the card and as far as capitalism goes, do it and let the free market decide if its good. But since socialist representatives don't like it or the power Amazon has they want to "outlaw" it which sets a dangerous precedent for the future.

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    Shelter Dweller lost in melb.'s Avatar
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    I'm always a bit suspicious of the "no one's being forced to" argument. Surely we should be protecting the underprivileged in society, not taking advantage of them

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    Hal killed Tormund! Pony's Avatar
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    Quote Originally Posted by lost in melb. View Post
    I'm always a bit suspicious of the "no one's being forced to" argument. Surely we should be protecting the underprivileged in society, not taking advantage of them
    How is it taking advantage? If someone has crap credit it is because they have proven themselves to not be responsible enough to pay back a debt. I sure as hell wouldn't give someone a loan without some sort of guarantee.

    All they have to do is not buy more than they can afford and pay off the card every month to avoid interest and they get rewarded with a better credit score and in the future an offer of a lower rate card.

    I learned at 2 that bad behavior does not get rewarded, somewhere as a society we seem to have lost that simple lesson.

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    Shelter Dweller lost in melb.'s Avatar
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    Quote Originally Posted by Pony View Post
    How is it taking advantage? If someone has crap credit it is because they have proven themselves to not be responsible enough to pay back a debt. I sure as hell wouldn't give someone a loan without some sort of guarantee.

    All they have to do is not buy more than they can afford and pay off the card every month to avoid interest and they get rewarded with a better credit score and in the future an offer of a lower rate card.

    I learned at 2 that bad behavior does not get rewarded, somewhere as a society we seem to have lost that simple lesson.
    I'm still uncomfortable about it. Not sure how a higher interest rate affords 'protection' to the lender

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    Quote Originally Posted by lost in melb. View Post
    I'm still uncomfortable about it. Not sure how a higher interest rate affords 'protection' to the lender
    Because as long as they are paying before (if) they default, the lender gets more of its money back, in this case, in the form of interest going towards the purchases that were made. It's the price of being a poor credit risk.

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    Mr Magoo RBP's Avatar
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    Quote Originally Posted by lost in melb. View Post
    I'm always a bit suspicious of the "no one's being forced to" argument. Surely we should be protecting the underprivileged in society, not taking advantage of them
    I actually tend to agree. Predatory lending practices are designed to suck desperate people in and string them along until default. The bet is that the company can extract sufficient profit in the process to cover the inevitable default. I don't necessarily subscribe to your "protecting" argument, but we also should not condone abusive business practices.
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    You have poor credit because you dont pay your bills, these fuckin idiots






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