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.
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Famous quotes containing the words interest, rate and/or battle:
“Wherever there is interest and power to do wrong, wrong will generally be done.”
—James Madison (1751–1836)
“I don’t know but a book in a man’s brain is better off than a book bound in calf—at any rate it is safer from criticism. And taking a book off the brain, is akin to the ticklish & dangerous business of taking an old painting off a panel—you have to scrape off the whole brain in order to get at it with due safety—& even then, the painting may not be worth the trouble.”
—Herman Melville (1819–1891)
“One may confidently assert that when thirty thousand men fight a pitched battle against an equal number of troops, there are about twenty thousand on each side with the pox.”
—Voltaire [François Marie Arouet] (1694–1778)