September 16, 2008
Michael Sheehan

Physician's Money Digest, July31 2003, Volume 10, Issue 14

Take a look at your credit cardstatement and you're likely to seethat home base for the issuer is eitherin Delaware or South Dakota. Thereis a reason. According to a 1992 USSupreme Court decision, states can'tenforce usury laws on national banksthat are based in other states.Basically, that means that even if thestate you live in has tough restrictionson interest charges and other fees,the credit card company can chargewhatever is allowed under the laws ofthe state that it calls home. Delawareand South Dakota, along with Californiaand Tennessee, have the mostliberal credit laws, with no caps oninterest rates, late fees, cash advancefees, or ATM charges.