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cybercrusader

Criminal Usury? Providian Bank?

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I just recently got my Providian CC statement and lo and behold the interest rate jumped from 18.99% to 28.99%. :shock: Holy sheeeeeiiiiiit! Nearly 30% interest! I don't think so!!! I've heard them doing this to folks who max out their cards -- but I rarely do this and I still have a big limit left!

So, I call up them up and while I'm complaining (in a civil manner) I get DISCONNECTED. I call up again, speak to another rep, start the whole story again --- AND I GET DISCONNECTED A SECOND TIME!!!!

Finally after nearly 45 MINUTES - I speak to a very nice rep and I tell her that if they don't IMMEDIATELY reduce my rate, I'm cancelling the card. She says, "sorry sir, there's nothing we can do.....we notified you over two months ago that the rate was changing. We gave you the opportunity to canel then." I said -30% interest? Is Providian insane?

I say cancel the card. She then asks me........why?....for the record of course.... I said because I know that I can get the same CC limit with Crapitol One, as bad as they are, for 14.99% - A WHOPPING 14% LESS than Providian.

Anyway, needless to say, I no longer carry a Providian card. My question is is this.....The usury rate is 25% in PA - Was Providian violating the law by charging 28.99%?

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My question is is this.....The usury rate is 25% in PA - Was Providian violating the law by charging 28.99%?

PA = PENNSYLVANIA

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I think I found the answer to my own question (although not the one I wanted :cry: ):

FYI: State usury laws mean squat when it comes to CC's (well, sorta). Federal usury law (National Bank Act (NBA) and the Depository Institutions Deregulation and Monetary Control Act) supercedes state law with respect to banks - so the CC issuer may charge as high a rate as is permissible in their state of domicile. Providian is domiciled in CA which has no consumer usury ceiling, so 28.99% it is.

reference:

Marquette vs. First Omaha Services, 1978 Supreme Court

http://www.bankrate.com/brm/news/cc/19980202.asp

It's a dog eat dog world... :twisted:

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