Interest Rate Battle
Marquette was involved in lengthy credit card interest rate litigation with the First National Bank of Omaha which resulted in an important US Supreme Court ruling regulating the banking industry. Marquette brought suit against First National claiming the interest rate charged Minnesota customers using First National credit card services (VISA) though legal in Nebraska, exceeded the interest rate allowed under Minnesota state law. Marquette was also issuing cards but did not exceed the interest rate permitted by the law in the cardholder's State. The Court ruled in 1978 that a Federally chartered bank like First National could offer credit card services nationwide and the maximum interest rate to cardholders was that allowed by the State the bank was located in and not the customer's State. This ruling prompted some US States (South Dakota, Delaware, Utah, Virginia, New Hampshire) to repeal their maximum interest rate laws. Banks offering credit card services quickly established offices and cardholder services in those States to take advantage of the "no cap" interest rates allowed by the State.
Read more about this topic: Marquette Bank Minneapolis
Famous quotes containing the words interest, rate and/or battle:
“The interest in Wisdom is fading. Soon there will not be enough left to support the aphorism, even though it tries to amuse by half-mocking the Wisdom it propounds.”
—Mason Cooley (b. 1927)
“This is the essential distinction—even opposition—between the painting and the film: the painting is composed subjectively, the film objectively. However highly we rate the function of the scenario writer—in actual practice it is rated very low—we must recognize that the film is not transposed directly and freely from the mind by means of a docile medium like paint, but must be cut piece-meal out of the lumbering material of the actual visible world.”
—Sir Herbert Read (1893–1968)
“Fold up the banners! Smelt the guns!
Love rules, Her gentler purpose runs.
A mighty mother turns in tears
The pages of her battle years,
Lamenting all her fallen sons!”
—Will Henry Thompson (1848–1918)