Actually the rate was capped until the supreme ruled otherwise https://www.creditcards.com/credit-card-news/marquette-interest-rate-usury-laws-credit-cards-1282

Actually the rate was capped until the supreme ruled otherwise https://www.creditcards.com/credit-card-news/marquette-interest-rate-usury-laws-credit-cards-1282.php https://www.creditcards.com/credit-card-news/marquette-inter... Traditionally there were hard ceilings on acceptable interest rates in most circumstances. After the Supreme Court ruling however this was no longer the case as companies could setup shop in a friendly state that had high interest rate ceilings. This is the reason so many lending outfits are based in South Dakota (on paper at least) as they were the first state that took advantage of this. Now when FICO became a thing in 1989 it’s one expressive goal was to maximize this opportunity to give lenders an optimal (e.g highest) rates they could charge customers for their loans. It doesn’t help the consumer at all in this regard.