Banks, and credit card companies, are locating credit and loan operations in states which allow exorbitant interest rates. The full faith and credit provisions of the U.S. Constitution then requires the other states to honor these contracts. This action is an abuse of the provisions in the constitution.
Congress must pass legislation requiring, that any contract issued in interstate commerce, comply with the usury and consumer protection laws of the state in which the customer resides. Congress has the power to require contracts be compliant with the laws of the state in which the customer resides. This would only apply to new cards because of the prohibition against retroactive laws, but would, over time, apply to all loans.
This legislation will be dificult to pass in the current environment in Washington. The banks, credit card companies, and other lenders, make large donations to the current members of Congress. The only way to combat this situation is to make members of Congress more afraid of being voted out of office, than they are greatful for the campaign contributions. A vote for me as a third party candidate will facilitate this process.
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