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I am sure they gain something from it.

My Brazillian bank charges me 600% yearly interest on credit card purchases.

However, the cost of a lawsuit can quickly offset the costs of a CC. Depending on the state, there may not be a maximum cap on expenses, making lawsuits incredibly expensive. (Whereas having paid by card you could ask for a chargeback instead of needing to sue)

It's also a very time consuming ordeal having to sue vendors in these instances.

 help



Am I mistaken or hasn't that been capped to 100% for a while?

The maximum they can take in fees in a 12 month period is 100% of the original sum, having a 600% interest rate just means they get to the 100% cap that much faster. Ensuring that the consumer does not have sufficient time to pay off the debt before it doubles.



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