Legal Question in Credit and Debt Law in Michigan

credit card agreements-contracts

Can usurious in Michigan be violated by South Dakota by charging 35percent intrest-while Michigans can not exceed 25percent-Our judge says yes-at the pre-trial hearing-I had a 9.75 percent in the agreement- then to 19 percent to 35percent forever then iI stop paying the bill.


Asked on 3/15/09, 2:06 am

1 Answer from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: credit card agreements-contracts

No. There is a U.S. Supreme Court case that says that a credit card company can import the interest rate from the state in which it is incorporated to account holders in any other state. Citi is incorporated in SD which has no cap on interest rates. That is apparently the reason or at least a significant reason they incorporated there.

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Answered on 3/16/09, 10:23 am


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