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Path: utzoo!watmath!clyde!burl!ulysses!allegra!alice!ark
From: ark@alice.UucP (Andrew Koenig)
Newsgroups: net.legal,net.misc
Subject: Re: Credit cards
Message-ID: <5165@alice.uUCp>
Date: Sun, 23-Mar-86 21:29:44 EST
Article-I.D.: alice.5165
Posted: Sun Mar 23 21:29:44 1986
Date-Received: Tue, 25-Mar-86 03:27:33 EST
References: <1216@ihlpa.UUCP>
Organization: Bell Labs, Murray Hill
Lines: 22
Xref: watmath net.legal:3158 net.misc:9402

> Having just filled out an application
> for "a bank credit card" I filled it
> all out and then noticed the name
> of a state "according to the laws
> of this (named stated).  I tore
> up the filled-out application as I
> had been told by people native to that
> state that there are no usury laws there.
> In other words, the "bank" could charge
> whatever they darned well pleased for
> monies "loaned" to you for charging
> different items. ...No law specifying
> the maximum interest they can charge
> a person, in other words, exists in
> the "anonymous" state where the issuing
> bank is located.

The alternative, of course, is to obtain a credit
card in a state that has a statutory limit on
interest charges.  That way, when rates go up,
the bank can simply cancel the card rather than
lose money on it.