Our Eye Center has answers to your vision health questions. Visit today.
by Sid Kirchheimer, From the AARP Bulletin Print Edition, January 1, 2010
Q. Why can credit cards charge such high interest rates?
A. Credit card interest rates are regulated by the state where the issuer is headquartered or chartered, not by the federal government.
Most card issuers set up shop in Delaware, South Dakota or Utah, states with weak—or nonexistent—usury laws that place no cap on interest rates. However, under the Credit CARD Act that takes effect Feb. 22, rates can’t increase on existing balances if your account is in good standing; and if you’re hit with an increase, you can cancel your card and pay off the balance at the old rate.
Sid Kirchheimer writes about consumer and health issues.
Please leave your comment below.
You must be logged in to leave a comment.
Up to 25% off device and online privacy protection plans
Help from experts & resources to get started
No-fee personal loans
AARP members receive exclusive member benefits & affect social change.
You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits.
Your email address is now confirmed.
You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age.
You can also manage your communication preferences by updating your account at anytime. You will be asked to register or log in.
In the next 24 hours, you will receive an email to confirm your subscription to receive emails
related to AARP volunteering. Once you confirm that subscription, you will regularly
receive communications related to AARP volunteering. In the meantime, please feel free
to search for ways to make a difference in your community at