New Jersey & Delaware -  Why credit cards often are from Delaware (43 views) Notify me whenever anyone posts in this discussion.Subscribe
From: Glen (GEAATL) DelphiPlus Member Icon Posted by hostApr-19 10:57 AM 
To: All  (1 of 2) 

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 hostApr-19 11:05 AM 
To: All  (2 of 2) 
 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."


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