New Jersey & Delaware -  Why credit cards often are from Delaware (203 views) Notify me whenever anyone posts in this discussion.Subscribe
From: Glen (GEAATL) DelphiPlus Member Icon Posted by host4/19/17 10:57 AM 
To: All  (1 of 4) 

Why So Many Credit Cards Are From Delaware

NerdWallet (blog)-Apr 17, 2017

Thumb through the credit card offers filling your mailbox, and you might notice a theme: Many have a Delaware return address. That’s no coincidence. Delaware is home to the credit card businesses of Chase, Discover and Barclaycard U.S., according to the Federal Deposit Insurance Corp. Bank of America and Citi also maintain certain card operations there. Together, those issuers represent about half of the U.S. credit card market. Meanwhile, Delaware residents account for only 0.3% of the U.S. population. What’s behind the credit card industry’s love affair with Delaware? It all started with a court decision almost 40 years ago...In 1978, the U.S. Supreme Court unanimously decided in Marquette National Bank v. First of Omaha Corp. that credit card companies could export interest rates from where they were located to other states... it left state usury laws essentially toothless...Delaware...eliminated usury ceilings,..allowed banks to impose several types of fees on revolving and closed-ended credit,...and implemented an inverted tax rate for banks making more than $20 million, taxing big banks at a lower rate than smaller banks


From: Glen (GEAATL) DelphiPlus Member Icon Posted by host4/19/17 11:05 AM 
To: All  (2 of 4) 
 9238.2 in reply to 9238.1 

From the above article, although there is a bad side, there is an upside:

"In 1980, Delaware state officials hoped the FCDA would add 1,000 jobs, Kenton said. As of February 2017, the state’s financial industry employs more than 47,000 people, according to the Bureau of Labor Statistics."


From: Bike (URALTOURIST1) DelphiPlus Member IconMay-3 3:08 PM 
To: Glen (GEAATL) DelphiPlus Member Icon  (3 of 4) 
 9238.3 in reply to 9238.1 


My CC from Delaware are actually pretty low.  My SD CC are a tiny bit higher but still low.  Maybe actual history and credit ratings are in play?  None of my major cards are 10% or more though I know of a lot who pay 16-18% routinely.   My Store Cards may be technically higher but I only use them during special offer periods (no interest for 90-180 days, etc.)


USCG Engineer 1961-1982

From: Glen (GEAATL) DelphiPlus Member Icon Posted by hostMay-3 4:28 PM 
To: Bike (URALTOURIST1) DelphiPlus Member Icon  (4 of 4) 
 9238.4 in reply to 9238.3 

To compete, almost every bank, even the ones that do a lot of high interest cards, have low fee offerings.   Good credit does help, as banks don't have to charge the highest rates allowed by law.   But by staying in states without caps on fees and interest, they stay free to set their own rules.   South Dakota also has some high caps, which has lured some banks there.


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