Consumer Blog
What is the maximum credit card interest rate?
Many consumers are suprised to find there is no limit on credit card interest rates (APR) under federal law. Those limits are set by state law, and card issuers are governed by the laws of the state they're based in.
So let's say you're in Missouri, and you a have a credit card account with a bank based in California. That card company is subject to California laws when it comes to the interest rates they can charge you.
As you'll see in this article, that's why a lot of credit card companies set up shop in states like Delaware and South Dakota, which have laws that are generally more favorable to the banking industry.
Curious how soon you can get out of credit card debt? You can use our handy calculator.
Technorati Tags: APR, bank, banking, finance, interest rate, shopping and spending, usury, credit card, moagoconsumer, consumer protection
Posted by on June 26, 2008 11:23 am :: Comments (9) :: Permalink
9 Responses to "What is the maximum credit card interest rate?"
says:
June 30, 2008 3:46 pm
My husband is self employed and business became very slow for awhile. We got behind on a couple of our credit cards and had set up payment arrangements with the company to get back on track. Last week a neighbor came to our door to tell us "Thomas" from a collection company called them to see if they knew us, the neighbor said "yes" and so "Thomas" proceeded to tell the neighbor our case # and asked the neighbor to give us the information and to call this company ASAP. Is this legal for a collection agency to contact someones neighbor and give them private information about us?
says:
July 2, 2008 1:14 pm
My daughter had elective surgery- Prior to the surgery we requested all provides provide a quote on charges as they have contracted rates with Anthem our provider. I have a $2500.00 deductable and 20% coinsurance after that. All vendors provided quotes and based on there quotes we decided we could afford the surgery. The morning of the surgery I again verified the amounts including paying the Surgery Center the amount I was assured it would not be more than. Today we received a billing for an additional $1100.00. Do we have any recourse?
says:
July 8, 2008 10:34 am
To Susan:
Under federal law, collectors are allowed to contact third parties only to attempt to contact you, not to share your information.
says:
July 14, 2008 10:22 pm
Can an Attorney get a court order to freeze a bank account in Missouri for an old debt without ever contacting the person? It seems to me that the Court would at least contact the person so that they would know that a judgment has been brought against them.
says:
July 16, 2008 4:18 pm
To Ralph:
It sounds like you are describing a civil process. So yes, if you are sued in court, you will be notified via summons.
says:
July 18, 2008 11:14 am
what is the highest that a credit card can go?
says:
July 18, 2008 11:33 am
To Brandon: I'm not sure what you're asking. If you're asking about interest rates, see the original post above. If you're asking about the amount you can charge, that's between you and your credit card company, defined as your credit limit. And these can be pretty high - here's one example.
says:
January 20, 2009 8:15 pm
I had heard that there is a bill in congress that is suppose to help with some of the unfair pratices of the credit card companies ? Is the interest that they charge one of them? I received a letter from one of them that they are raising my rate I quote "in response to market conditions" If they are a loud to do this they are going to put a lot of people & business under. One of the cards I have for my business went from 16.99 to 37.18 they are making the consumer pay. While they line there pockets.
