Credit Card Interest Rate Law Change?

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Legislation has been introduced in Congress to limit credit card interest rates.

In other action, credit card companies, which already have made big moves in lowering the amount of credit card debt they will lend, are changing their rewards programs.

To offer more rewards? Same rewards for less money? No, fewer credit card bonuses for the same amount of credit card usage.

Years ago, the Supreme Court effectively gutted state usury laws, which limit the amount of interest lenders can charge, by ruling one state could not limit the interest rate charged by a lender located in another state.

So, Delaware and South Dakota set high interest rate limits, and, amazingly, credit card companies started locating there. See where you send your payments.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jay Fleischman, Shaev & Fleischman LLP | Attorney Advertising

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