But 1978 also saw an ominous sign of a coming wave of deregulation when a Supreme Court decision interpreted the National Bank Act to mean if a lender was in one of the few states without any limits on interest rates, it could lend without limits nationwide, effectively invalidating thirty-seven states’ consumer protections—and Congress declined to amend the law. That’s why, today, most of your credit card statements come from South Dakota and Delaware, states with lax lending laws.
