Is there no limit to the interest rates a Credit Card company can charge?

Some people have asked us if the Federal Government regulates the Interest Rates a credit card company can charge. Once upon a time, the Federal Government had a national cap on the amount of interest that could be charged on a loan. But after the Great Depression, it was repealed and it was left up to the individual States to place or implement "usury laws". As you can see by your current interest and default rates, credit card companies found safe havens in certain states that either past lax or no usury laws.

These clusters were largely formed by a 1978 Supreme Court decision that determined national banks only have to obey the interest-rate caps of the state that they are chartered in, not the state where the bank's customer lives.

It may sound outrageous but that is why some credit card companies can charge as much as 60% interest and get a way with it. Maybe it's time for you to ask your Congressperson to start looking at a National Cap once again.

If you find yourself scrambling to make ends meet or just want to learn more about your financial options,
give us a call 1-877-510-1001.