| Many people often wonder why it is that their credit | | | | with another lender has been compared to having a |
| card bills come to them from Sioux Falls in South | | | | cartel, or price fixing structure. A major concern to |
| Dakota. The simple reasoning for this is that South | | | | many folks is the possibility that the credit card shown |
| Dakota is the home of very liberal laws concerning | | | | as being in a state of default may not simply be so. It |
| consumer protections for credit cards. The state of | | | | very well could be the result of an error on the part of |
| South Dakota receives a great deal of revenue from | | | | the credit card issuer. If this is the case, while the |
| it's partner in crime, the credit card industry. Albeit it is | | | | customer has full legal rights to have the error |
| certain that the absence of corporate income taxes | | | | corrected on his credit report, any lender who instituted |
| plays a huge factor as well. There are many financial | | | | the universal default rate is under no obligation to return |
| service companies located in South Dakota include | | | | to the normal rate. Naturally, this sort of position puts |
| Great Western Bank, Total Card Inc., BankFirst, Capital | | | | many credit card consumers in a state akin to anger. |
| Card Services, HSBC, PREMIER Bankcard, and Wells | | | | Simply put, this is not right. |
| Fargo. | | | | Over the last few years there have been several |
| Credit card fees over the years recently have | | | | attempts by concerned congressmen to simply have |
| skyrocketed from $2.6 billion in 1980 to over $22.5 | | | | the practice of universal default outlawed. One such |
| billion in 2006. The thing that has a great number of | | | | congressman was Sen. Chris Dodd, D-Conn. Still, these |
| consumers and advocates irked is a common practice | | | | card companies are also amongst the political party |
| named "universal default""universal default". In this | | | | contributors, and seeking meaningful changes such as |
| scheme when you are late paying any bill, the credit | | | | these in the face of subtle corruption has always been |
| card company will raise your rate, sending some rates | | | | a daunting task. "I've never been able to get a bill |
| far higher than 20%. There have been many criticisms | | | | passed of any major significance because they're so |
| of this structure including the concept of one lender | | | | big and so influential," says Dodd. |
| charging a higher price when their customer defaults | | | | |