Quote:
Originally Posted by Mike P
Every state I know of has a criminal usury law, which typically sets any interest rate above a percentage in the low 20s as a criminal offense.
How credit card companies can get away with charging some customers a 30% interest rate is a mystery to me.  |
Exactly, Mike - in fact, that's
precisely what I discussed with my wife this morning over coffee - if memory serves, wasn't - or isn't - anything over somewhere around 18 or 19% in RI considered usury?
They said that credit cards have pretty much put loan sharks out of business - and the consequences are almost as bad given the behavior of the unregulated collection agencies who buy the bad debt for mere pennies on the dollar.
I used to joke with my wife about the rates charged for late payments saying that it would be cheaper to get the money from a 'shark. Not too far from the truth anymore...
BoA, Citi, et al. will kill ya with the vig alone on outstanding balances - and that's the point that everyone misses...
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