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Q: URGENT - Interest caps Federal, IA, and TN ( Answered 5 out of 5 stars,   0 Comments )
Subject: URGENT - Interest caps Federal, IA, and TN
Category: Business and Money > Finance
Asked by: callarina-ga
List Price: $20.00
Posted: 22 Oct 2004 06:43 PDT
Expires: 21 Nov 2004 05:43 PST
Question ID: 418488
I urgently need to know what, if any, caps there are on the rates
credit card companies can charge in Iowa, Tennessee, and at the
federal level.  If there are caps, and I believe there are, do they
apply to where the charges were made (months to years ago) or to where
I live now?  Federal, of course, is anywhere in the U.S.  I have a
card I think is extorting me; I used it living in Iowa almost 1 1/2
years ago; I have now lived in Tennessee for several months and the
rate has climbed twice since I moved here.  Need an answer VERY
QUICKLY, please.
Subject: Re: URGENT - Interest caps Federal, IA, and TN
Answered By: tar_heel_v-ga on 22 Oct 2004 07:41 PDT
Rated:5 out of 5 stars

Unfortunately, the interest rate that a credit card company can charge
is not determined by the card holder's residence, by rather by the
location of the issuing bank.  While there are some states that have
interest rate caps, the majority of the credit card issuing banks are
located in states without such restrictions.  This means that card
companies in these states can charge any rate they want as long as it
is listed in the cardholder agreement.  As for the federal government,
a 1978 Supreme Court decision ruled that national banks (those with
"N.A." in their name) can charge the highest rate allowed in their
home state to customers living anywhere in the US, including states
that have rate caps.  In summary, the credit card rate of your card is
based upon the state laws in the banks state, not yours.

I wish I could provide you a better answer, but, unfortunately, the
credit card companies are ahead in this issue.  In my reference below,
you can find some tips for lowering your rate.  If you need any
additional clarification, please let me know.



Search Strategy:
credit card interest rate caps by state

Laws capping interest rates
callarina-ga rated this answer:5 out of 5 stars

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