Tag Archive | “FAQs on fees”

Costs and Fees: FAQs About Credit Card Fees – Part 1

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In this series of articles I have tried to answer some FAQs about credit card fees. Lets have a look at the questions related to credit card fees that are frequently asked by the borrowers.

Question: My credit card interest rate has been raised up to 29.99% when I was late paying the bill. So my question is that what is the maximum allowable APR on credit cards?

Answer:  This misconception is popular among the people that state usury laws protect borrowers from high interest rates on their credit card debt.

credit card fees 1

In 1978 Credit card issuers have gained a great victory when the Supreme Court ruled in Marquette vs. First Omaha Services that for nationally-chartered banks it was legal to export the more costly terms of their cards to those states where the laws regarding interest rates restricted such practices. It is  required for the credit card issuer that he only have to follow the law of the state in which its credit card operations are located, and there is no need for him to follow the laws of the cardholder’s state of residency.

After that the Supreme Court has issued this ruling, credit card issuers have moved to states with permissive credit policies like South Dakota and Delaware.

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