Concerns Regarding Credit Card Offer (cont'd.)
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Concerns Regarding Credit Card Offer
Posted: Sun Mar 26, 2006 11:04 am
Quote:
CC co's are using segments of the universal default Fed laws to circumvent State usury limits
No. There are no "universal default Fed laws"! So there's no need for any circumvention. There are no Federal usury laws any longer either. And although SOME states still have usury laws, the big banks relocate their credit card departments to states that don't.
Quote:
If you've ever looked at the return address on your statement, you may notice your credit card issuer is located in a state such as South Dakota or Delaware. That's because these are the states that have either weak or no "usury laws" meaning there is no cap on the interest rate that is charged. (View this map that shows the states where the top ten credit card issuers are located.) The federal government once had national usury 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 But after the Great Depression, it repealed them and some states put no new usury laws in place. That's why Citibank, the issuer of Mastercard, moved to South Dakota, which has no cap on interest rates.
http://www.pbs.org/wgbh/pages/frontline/shows/credit/eight/
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: awshucks
Posted: Sun Mar 26, 2006 12:52 pm
Ok Polonius, forgive my lack of knowledge. I assumed that 'universal default' was the result of the latest round of Federal law regarding bankruptcy. Is it solely the result of court precedent?
Furthermore, does the activity noted in the article seem predatory to you?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: TomfromCT
Credit Expert (100+ Posts)
Posted: Sun Mar 26, 2006 2:58 pm
My understanding is some proir federal court cases ended federal usury laws and threw it back to the states.
Arkansas has a limit on interest rates. Finding a bank chartered there is hard because the banks prefer places like Delaware. I think Pulaski Bank is chartered in Arkansas.
And they are predatory to the max. The whole idea of universal default. Basically, if they smell blood in the water, they are free to take their own bit. And with the new BK laws - you cant swim away.
I wonder if suicide rates will increase in a fashion conistent with the new BK laws.
_________________
Average credit score: 709 !!!!!!
WOOOHOOOOOO
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Mar 26, 2006 3:18 pm
"universal default" is just a bank policy. Nothing to do with any federal or state law.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Mar 26, 2006 3:22 pm
DON'T EVER GIVE THEM A CHANCE TO USE THE DEFAULT RATE
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: TomfromCT
Credit Expert (100+ Posts)
Posted: Sun Mar 26, 2006 4:04 pm
mouse wrote:
DON'T EVER GIVE THEM A CHANCE TO USE THE DEFAULT RATE
Good idea, but easier said than done.
Most people who hit BK do so becasue of a job or illness....
_________________
Average credit score: 709 !!!!!!
WOOOHOOOOOO
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: bullet875
Posted: Sun Mar 26, 2006 7:40 pm
Whoa! Why does the term "loan shark" come to mind?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Concerns Regarding Credit Card Offer
Posted: Sun Mar 26, 2006 11:04 am
Quote:
CC co's are using segments of the universal default Fed laws to circumvent State usury limits
No. There are no "universal default Fed laws"! So there's no need for any circumvention. There are no Federal usury laws any longer either. And although SOME states still have usury laws, the big banks relocate their credit card departments to states that don't.
Quote:
If you've ever looked at the return address on your statement, you may notice your credit card issuer is located in a state such as South Dakota or Delaware. That's because these are the states that have either weak or no "usury laws" meaning there is no cap on the interest rate that is charged. (View this map that shows the states where the top ten credit card issuers are located.) The federal government once had national usury 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 usury laws in place. That's why Citibank, the issuer of Mastercard, moved to South Dakota, which has no cap on interest rates.
http://www.pbs.org/wgbh/pages/frontline/shows/credit/eight/
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: awshucks
Posted: Sun Mar 26, 2006 12:52 pm
Ok Polonius, forgive my lack of knowledge. I assumed that 'universal default' was the result of the latest round of Federal law regarding bankruptcy. Is it solely the result of court precedent?
Furthermore, does the activity noted in the article seem predatory to you?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: TomfromCT
Credit Expert (100+ Posts)
Posted: Sun Mar 26, 2006 2:58 pm
My understanding is some proir federal court cases ended federal usury laws and threw it back to the states.
Arkansas has a limit on interest rates. Finding a bank chartered there is hard because the banks prefer places like Delaware. I think Pulaski Bank is chartered in Arkansas.
And they are predatory to the max. The whole idea of universal default. Basically, if they smell blood in the water, they are free to take their own bit. And with the new BK laws - you cant swim away.
I wonder if suicide rates will increase in a fashion conistent with the new BK laws.
_________________
Average credit score: 709 !!!!!!
WOOOHOOOOOO
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Mar 26, 2006 3:18 pm
"universal default" is just a bank policy. Nothing to do with any federal or state law.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Mar 26, 2006 3:22 pm
DON'T EVER GIVE THEM A CHANCE TO USE THE DEFAULT RATE
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: TomfromCT
Credit Expert (100+ Posts)
Posted: Sun Mar 26, 2006 4:04 pm
mouse wrote:
DON'T EVER GIVE THEM A CHANCE TO USE THE DEFAULT RATE
Good idea, but easier said than done.
Most people who hit BK do so becasue of a job or illness....
_________________
Average credit score: 709 !!!!!!
WOOOHOOOOOO
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: bullet875
Posted: Sun Mar 26, 2006 7:40 pm
Whoa! Why does the term "loan shark" come to mind?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 4:19 PM
0 Comments:
Post a Comment
<< Home