PA apr

Hi, Christine! :D I, unfortunately, am not an expert on the credit issues. However, hang tight and one of our forum members will be along and can answer your question for you! Okay? Just hang on and you'll get an answer!

Most credit cards are issued by banks. Federal law allows FDCI insured banks to "import" their interest rates from their home state. This is why most credit card companies are located in DE. So unless the credit card was issued by a local company, PA law would have nothing to do with it.

Read your Tos that comes with the card and it will show your maximum interest as well as state that they use for their contract.

The highest rate I have seen on a card is 30.24 as a default rate on an American Express. I closed an American Express account 9 months ago with a 0 balance. 2 months ago they sent me a bill for approximately $200 with the default rate applied. It turns out that I had a $100 charge in dispute and they denied the dispute so I have to pay the $100. I made them remove all the fees, penalties and interest that they charged me on the $100 for 9 months making it $200.

Oh I have seen more that that. I had a 35.99% Aspire Visa.

PENNSYLVANIA, the legal rate of interest is 6%, and this is the
general usury limit for loans below $ 50,000, except for: loans with
a lien on non-residential real estate; loans to corporations; loans
that have no collateral above $ 35,000. Judgments bear interest at
the legal rate. It is criminal usury to charge more than 25%.


There is one thing that many people dont know abot though. Banks dont go by the rules of the state where the credit card is issued. They go by the state rules of the state, where the bank is registered. Now guess why Citibank is registered in Nevada? :)


Check this out as well:

http://www.wolfbaldwin.com/lawyers_attorneys/articles.asp?ArticleID=32&Page=legal_interest_usury_PA_interest_rates_Pennsylvania.asp

The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania????????s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.

Thanks for the clarification, goudah! Makes a difference! :wink:

I really want to write a good article on APRs when I get my blog going. There seems to be a lot of confusion on what and how

i just took a payday loan and the apr after getting the contract back turns out to be 638.75% is that more then allowed in pa

Here is a link to state pay day loan laws .
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html