Pay now or pay for ever

So Obama wants to protect us from the evil doings of Credit Card Companies ( aka big banks) at least that is what the web is abuzz about...
http://news.yahoo.com/s/nm/20090514/pl_nm/us_financial_creditcards_obama_7

Well that is all well and good, and indeed I hope he succeeds. But twas but a year or so ago that the Credit Card Companies drove a stake through a long held state power - they usurped the usury laws powers. Usury? Need a refresher?
http://en.wikipedia.org/wiki/Usury

So usury law as commonly practiced in the USA, is where states decide at what point interest rates are so extreme as to be criminal. Ahhhh, had I but written this 9 months ago... well actaully I did, just not is such an open forum. So many readers then laughed.. "interest? the credit card companies are throwing cards at me with rates as low as 4%! What do I care what the laws says, as long as rates are low in an open market". No one noticed then, and no one cared. Even now few realize just what the federal law did... but now... now I think a few more may care!

Pre-(the unamed law CC god law) The federal government did not set nor enforce any usury law, nor did they prevent any state from doing so. It was rather like religion. Each state figures out what they like. In the state of Mississippi the legal limit was 24.99%. Does that number look familiar? Yep, thats the rate one is used to seeing as being the maximum rate charged by Credit Cards. And it was limited by the state. However, there is now a new Federal law that now over-rides any state law. The new state law imposes the same limit... 24.99% so what is the big deal? The big deal is that the Federal law now adds the US prime lending rate to the limit. So if the US prime lending rate is 1% then the max that can be charged by a Credit card is 24.99% plus 1% for a total of 25.99%. OK so the Credit cards can make a little more money .. no big deal you say. Wrong! you see the prime lending rate is an arbitrary number. It is used by the US to manipulate the economy in hopes of keeping the economy strong. It is not meant to be used to determine interest rates on private debt. If the government determines that a high rate of interest is needed to protect the economy,, there is no limit on how much the prime lending rate can change. Its just as easy to make it 50%.. or 60 % as it is 2%. Its a tool for a specific purpose. But for banks its a sure fire way overturn all state laws, make a hefty profit, and make sure that from now on, no matter what the Fed does to the prime lending rate... banks win.

Just out of curiousty? what is the current rate on your card?
How many invitations for new low rate cards have you gotten this month?, last month? the month before?
Want to make some sure fire high dollar money? Pay off that Credit card... NOW!