Question
Chase credit cards: are their interest rate policies legal?
I realized the other day that Chase has increased my APR to 28%, despite good credit history. When I called them to ask for a reduction, they told me that they're unable to reduce any interest rates on any cards for the time being, until Obama's credit card bill goes through. This didn't seem to make much sense to me. Is it legal? Sane? 28% is crazy talk.
3 weeks ago - 5 answers
Best Answer
Chosen by Asker
It is legal....usury laws were basically gutted in the USA in 1978....Chase could charge a trillion percent and it would be legal. This all dates back to 1978, when the US Supreme Court ruled that all states must recognize the lack of interest rate ceilings in other states...this ruling created a loophole that basically voided usury/interest rate ceilings in the USA. There are no interest rate ceilings in Delaware and South Dakota, where 99% of all lending institutions are incorporated....as a result, it is perfectly legal to charge whatever interest they want. As to fixing this problem, that means re-instituting usury laws. - Credit card companies have become vicious predators in recent years. The only real way to fight back is to pay off the debt and stop using their ridiculously high interest products. Americans need to wean themselves off from credit cards and start saving and spending only what they have.
by CatDad
3 weeks ago
Asker's Rating: 
Other Answers
Sorry they are wrong. What they are talking about is more new legislation coming soon. The new law that was passed a couple of months ago clearly states that if you disagree with the new terms they can close your account and you can keep the old interest rate. Call them back and tell them you do not agree with the new terms. They will close the account and keep the old terms the same. Caveat. If it will take you more than 5 years to pay the balance with the old interest, they may make your minimum payments larger. /
by Judy- 3 weeks ago
yes chase is unscrupulous cold hearted pig. that is why we need Obama to protect "WE THE PEOPLE" from taking Advantage
by stingray- 3 weeks ago
I once talked to a credit repair company who would “save me up to 50% of my debt.” Using a figure of $20,000 debt, the rep told me they could cut that in half to $10,000…and their fee was only $13,000. So to have them help me, I’d pay $23,000 when all was said and done! Something to think about…
by anon y- 3 weeks ago
Wake up and smell the coffee people! The credit card companies have a ton of money, and they are lobbying these laws. Yes, these laws will go through BUT there will be many loopholes to still rip you off. 28% is crazy and theres nothing you can do about it. I say get a new card, or just use a debit card =)
by Robert- 3 weeks ago