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:
“A man’s interest in a single bluebird is worth more than a complete but dry list of the fauna and flora of a town.”
—Henry David Thoreau (1817–1862)
“Unless a group of workers know their work is under surveillance, that they are being rated as fairly as human beings, with the fallibility that goes with human judgment, can rate them, and that at least an attempt is made to measure their worth to an organization in relative terms, they are likely to sink back on length of service as the sole reason for retention and promotion.”
—Mary Barnett Gilson (1877–?)
“Marriage is a fierce battle before which the two partners ask heaven for its blessing, because loving each other is the most audacious of enterprises; the battle is not slow to start, and victory, that is to say freedom, goes to the cleverest.”
—Honoré De Balzac (1799–1850)