I was under the impression that the legal limit for yearly interest agreements for things like credit cards was 30%. Did I miss something, or am I just completely wrong?
2007-05-23 23:37:42 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
Actually, there is no limit on the amount a cc company can charge you.
Check the return address on your statement and find out in which state your card issuer is based. The federal government once had national ursury laws that set a cap on the amount of interest that could be charged on a loan, but after the Great Depression, it repealed them and some states put no new ursury laws in place. The top ten credit card companies have flocked to those states:
New Hampshire (no cap) -> Providian
South Dakota (no cap) -> Citibank
Utah (no cap) -> American Express
Arizona (36% cap) -> Bank of America and Direct Merchants
Virginia (no cap) -> Capital One
Delaware (no cap) -> JP Morgan Chase, MBNA, Morgan Stanley (Discover) and HSBC
Yes, as consumers, we're getting hosed and the cc companies are doing it legally.
:-(
2007-05-24 03:09:31 · answer #1 · answered by YSIC 7 · 1⤊ 0⤋
If you are in the US, different states have different laws about the usury cap. Check with your state's banking commission. Credit card companies can jack up the rates in some cases, like people who are late in payments, don't pay the minimum or don't pay at all.
2007-05-23 23:42:16 · answer #2 · answered by regerugged 7 · 1⤊ 0⤋
I have a Tesco card and that is only 24. You had better swap quick.
2007-05-24 00:00:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
mine are at 29 percent so i know where your coming from
2007-05-23 23:40:53 · answer #4 · answered by ♥lois c♥ ☺♥♥♥☺ 6 · 0⤊ 0⤋