Maximum credit card interest rate allowed be law?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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gotrippedoff
 
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Maximum credit card interest rate allowed be law?

Postby gotrippedoff » Thu Nov 11, 2010 3:36 pm

Like I said in my other post I got charged $30 interest for carrying a $1200 for just 4 days! What is the maximum credit card interest rate allowed by law because whatever happened on my account has got to be illegal. There is no way that $30 interest in 4 days for that amount is at a legal interest rate. That's almost $10 a day. If I carry it a year that would be around $3000 in interest on a $1200 balance. Tell me how that can be allowed by law.


JL70
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Postby JL70 » Thu Nov 11, 2010 7:29 pm

gotrippedoff wrote:Like I said in my other post I got charged $30 interest for carrying a $1200 for just 4 days! What is the maximum credit card interest rate allowed by law because whatever happened on my account has got to be illegal. There is no way that $30 interest in 4 days for that amount is at a legal interest rate. That's almost $10 a day. If I carry it a year that would be around $3000 in interest on a $1200 balance. Tell me how that can be allowed by law.


Do you have your statement?
I don't know what's the cap for the APR, but you can take a look at the back of your statement and it will tell you how the interest is calculated. What I know is that is on daily balance. Also at the bottom of your statement you can see your rate and how is calculated.

Credit card interests can become outrageous, don't carry balances, you could end up paying them for the rest of your life.

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Cucumber
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Postby Cucumber » Fri Nov 12, 2010 3:50 pm

That happened bec you paid it off after the due date. When that happens you get charged interest going back to the day you made the purchase.

days in billing cycle + days in grace period + 4 days = more than 4 days

and I don't think there is a maximum credit card interest rate allowed by law, the sky's the limit :(
OBAMA
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ingy91
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Postby ingy91 » Sat Nov 13, 2010 2:24 am

Why arent there laws for this kind of stuff. I thought that is what the reform was supposed to do.

JL70
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Postby JL70 » Sat Nov 13, 2010 10:24 am

ingy91 wrote:Why arent there laws for this kind of stuff. I thought that is what the reform was supposed to do.


There are. What they do is completely legal.

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alsteig
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Postby alsteig » Mon Nov 15, 2010 8:16 pm

Why should there be laws against high interest rates? Last time I checked you have the option to take out a credit card. If you are to naive to read the credit card agreement, and understand the rates as well as compound interest, I don't think you should have the card. Regulating stupidity is not the answer.

Suitelife
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Postby Suitelife » Fri Nov 26, 2010 12:45 pm

I thought some states had maximum credit card interest rate laws for usury or something

dopey
 
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Postby dopey » Sun Nov 28, 2010 2:07 am

It depends on the state the credit card is issued. That is why most credit cards are legally in South Dakota where there are no [or loosely regulated] usury laws.



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