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North Dakota and Delaware are Financial Centers?

St. Louis based bankruptcy attorneys The Castle Law Office are currently helping those who are considering filing for bankruptcy. If you are deep in debt and aren’t sure where to turn, we can help.

If you have a great deal of credit card debt, you have probably noticed that you are sending your monthly payment to either Delaware or North Dakota.

You can be forgiven for not thinking much about where you send your payment. You are probably preoccupied with the amount of money you have to send every month, or are angry about yet another fee or rate hike that doesn’t make any sense.

But if you stop to think about it, you might wonder why it is that enormous, billion dollar credit card companies are holed up in Wilmington, Delaware and Sioux Falls, North Dakota. Nothing against these cities; Sioux Falls is beautiful, and Wilmington is also a friendly place. But isn’t New York supposed to be the financial capital of the United States?

You are correct in assuming that New York is where the money is. Indeed, Citibank, Capital One, and practically every other major credit card company in America have offices there. That is where the profits are put to work. They are invested, moved offshore, and re-lent to smaller banks and concerns. It’s also where marketing companies are put to work to come up with new advertisements featuring Vikings and lists of expensive things that you should buy that are actually “priceless,” even though they really aren’t.

But there is a big difference between where the money is put to work and where the money is invested. Credit card companies collect their monthly payments and issue their cards from Delaware and South Dakota simply because there is precious little regulation with regards to financial lending in either one of these states. And by “precious little,” I actually mean “none at all.”

This is why credit card companies have no problems with raising your rates to 25% if you are half a day late with your payment.

This is why you get hit with a $50 late fee if your payment is late.

This is why the rules governing your credit card are less fair than those imposed by your local loan shark.

Since there are no federal laws governing interest rates, and since South Dakota and Delaware have no such laws either, it shouldn’t come as a surprise that the credit card companies set up business there. They can essentially do what they want.

The credit card companies have argued that by bringing their business to these states, they have helped the local economies tremendously by providing jobs and all sorts of financial capital. But that probably doesn’t matter much to the average family in St. Louis that had to put $25,000 worth of medical bills on their credit cards.

The Castle Law Office is a St. Louis Bankruptcy law firm that helps those who are suffering financially get through the nightmares of debt collection agencies and non-stop harassment. If you find yourself deep in debt and aren’t sure where to turn, we can help.

Contact our offices for a free legal consultation today.

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