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.

callarina..

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.

Regards,

-THV

Search Strategy:
credit card interest rate caps by state

Reference:
Laws capping interest rates
http://www.bankrate.com/brm/news/cc/20020814f.asp