Mrig
modesto,#2Consumer Comment
Fri, February 12, 2010
Yes, HFC does charge interest rates that exceed most state's usury limits. However, in the 1970's the Supreme Court ruled that money or credit lent out by a national bank is governed by the usury ceiling of the state in which the BANK IS HEADQUARTERED. This is why most banks are headquartered in South Dakota and Delaware, places that have less stringent usury laws. This does not bode well for consumers because the only people that are held to usury laws are individual persons but banks are exempt from those restrictions!
With that in mind, usually HFC lent money out to people who hadn't a prayer of paying it back, namely because the interest rates were so high AND were variable once the accounts converted to revolving accounts. And once the accounts converted to revolving accounts, a person might NEVER pay them off; at least not making the minimum payment because interest grew faster than your ability to repay on principal.
The whole thing was a trap that violated the principles of good faith and fair dealing. Many people have suffered because of their unethical conduct. If they are going to sue you, you might consider unjust enrichment as an affirmative defense. Meanwhile, you ought to write your attorney general and compile as many statements as you can from them to even see if the computations for interest were done correctly etc. A forensic accountant might help...best wishes.
Northwest
Gresham,#3Consumer Comment
Fri, January 22, 2010
If HFC is operating outside the law, are you going to report them to the authorities?