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:
“Whoever lives for the sake of combating an enemy has an interest in the enemy’s staying alive.”
—Friedrich Nietzsche (1844–1900)
“Strange that the vanity which accompanies beauty—excusable, perhaps, when there is such great beauty, or at any rate understandable—should persist after the beauty was gone.”
—Mary A. [Elizabeth, Countess Von] Arnim (1866–1941)
“If you are willing to inconvenience yourself in the name of discipline, the battle is half over. Leave Grandma’s early if the children are acting impossible. Depart the ballpark in the sixth inning if you’ve warned the kids and their behavior is still poor. If we do something like this once, our kids will remember it for a long time.”
—Fred G. Gosman (20th century)