| Many people often wonder why it is that their | | | | structure. A major concern to many folks is the |
| credit card bills come to them from Sioux Falls in | | | | possibility that the credit card shown as being in a |
| South Dakota. The simple reasoning for this is | | | | state of default may not simply be so. It very |
| that South Dakota is the home of very liberal | | | | well could be the result of an error on the part of |
| laws concerning consumer protections for credit | | | | the credit card issuer. In cases such as this, the |
| cards. The state of South Dakota receives a | | | | consumer may have full legal rights to have their |
| great deal of revenue from it's partner in crime, | | | | credit report corrected to reflect the truth of the |
| the credit card industry. Albeit it is certain that the | | | | matter, the credit card issuers are under no |
| absence of corporate income taxes plays a huge | | | | obligation to revert the interest rate back to what |
| factor as well. There are many financial service | | | | it was before the mistake occured. It simply goes |
| companies located in South Dakota include Great | | | | without saying that this sort of position leaves |
| Western Bank, Total Card Inc., BankFirst, Capital | | | | many credit card holders in a state not unlike that |
| Card Services, HSBC, PREMIER Bankcard, and | | | | of anger. Simply put, this is not right. |
| Wells Fargo. | | | | Over the last few years there have been several |
| Credit card fees over the years recently have | | | | attempts by concerned congressmen to simply |
| skyrocketed from $2.6 billion in 1980 to over | | | | have the practice of universal default outlawed. |
| $22.5 billion in 2006. The thing that has a great | | | | One such congressman was Sen. Chris Dodd, |
| number of consumers and advocates irked is a | | | | D-Conn. Yet, many credit card firms are some of |
| common practice named "universal | | | | the largest contributors to the various political |
| default""universal default". In this sytem when you | | | | parties. So seeking changes that will only benefit |
| find yourself late paying the bill, the card company | | | | the rank and file noncontributing citizenry is not |
| might raise your interest rate to something that is | | | | something that our congress is most famous for. |
| well over 20 percent. There have been many | | | | It can be argued that in Washington money talks, |
| criticisms of this structure including the concept of | | | | as subtle corruption has been a part of legislative |
| one lender charging a higher price when their | | | | procedure for years. "I've never been able to get |
| customer defaults with another lender has been | | | | a bill passed of any major significance because |
| compared to having a cartel, or price fixing | | | | they're so big and so influential," says Dodd. |