Banks also provide personal loans for cars, homes, college tuition and other such needs. But few would expect to pay interest of 18 percent or more on those loans. In each case money is borrowed. Yet one lender is held to a different standard. The lack of federal oversight over the credit card industry.
States can regulate credit card rates, and rates do vary from state to state.
There are rates under 10 percent and those beyond 35 percent. Some companies market a 12 percent rate, but the rate jumps quickly with one late payment. The federal government has long placed restrictions on capitalism. Just because an 18 percent credit card rate is common doesn't make it reasonable. Oddly, Americans complain about the cost of gasoline, cable television and prescription drugs, among other things, but not high credit card rates.