Which States' usury laws apply to credit card accounts? The bank is charging a higher interest rate than my State allows. Is this legal?

This may be legal because the maximum interest rate is generally determined by the law of the State where the national bank has its designated headquarters. Under certain circumstances, a national bank may charge rates permitted by the law of a State where it has branches even though its designated headquarters is located in another state. In both situations, the rates can be charged no matter where the borrower resides.

You should review your Account Agreement, which is the contract governing your account, or any subsequent notifications regarding your account. It should provide information on which State's usury law will apply.

March 2010