The reason some issuers charge outrageous interest is that state usury limits for interest on credit cards are considered irrelevant for banks which was the result of a decision passed down by the Supreme Court and federal laws. (lendedu.com)
Some have claimed that legislative fixes to address concerns about the Madden decision could aid unscrupulous lenders that simply seek to avoid usury limits. (americanbanker.com)
When a borrower does not have sufficient cash flow and accepts loan terms they don't understand with interest rates that far exceed the usury limit, business failure becomes a likely outcome. (entrepreneur.com)