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February 12, 2005
Credit Card Interest Rates
There is a credit card company in Britain that charges a 70% interest rate.
Many credit cards here in the USA charge 20 to 25% rates - outrageously high.
And poor people are the ones likely to be hit by these charges.
Other credit cards flat out lie about 'fixed rates'.
There used to be usury laws back in the day. They limited credit card and other interest rates to maybe 14 to 18%. I guess some court or other threw out usury laws, or perhaps lawmakers were convinced by bankers to get rid of those laws must have been during President Carter's time in office - when interest rates on homes were up to 15, 16% and more and no one could afford to buy one. Or perhaps it was Paul Volker. Here is a history of prime rates.
When the prime goes up, credit card interest rates go up - but I have never seen them go down - perhaps it is time to reconsider usury laws - stop the 'check cashing' businesses who prey upon the poor and put a top limit on credit card rates.
Posted by Beth at February 12, 2005 10:22 AM
Comments
And people will pay it, thats the scary thing. If they need the money badly enough, say for medicine, then they will pay any fee to get it. I mean, I've gone over my check card limit ($30 fine) to buy gas to get home. This needs to be fixed.
Posted by: MikeTheLibrarian at February 12, 2005 3:16 PM
Oh, yeah. My primary card is now the one on which the PENALTY rate is less than the regular rate on my other card! (It's also USAA, so I know they aren't going to volte face on me and do something nasty.) But a lot of people don't have my options, and (strangely enough) I remember when my credit card balance started revolving, and it had to do with being entirely unable to get a job (because of being "overqualified"! The twits! I. Just. Wanted. A. Job.)
Posted by: B. Durbin at February 17, 2005 6:31 PM