My question involves a banking matter in the State of: Arkansas.
One year ago, I applied and was approved for a Wal-Mart credit card. I do not remember what the starting interest was, but you will soon find that that is irrelevant.
As I read Article 19 of the state constitution (I actually read that for fun, imagine that), under section 13, subsection b, found at http://www.sos.arkansas.gov/ar-const...rcart19-13.htm, it states, "All contracts for consumer loans and credit sales having a greater rate of interest than seventeen percent (17%) per annum shall be void as to principal and interest and the General Assembly shall prohibit the same by law." This is in the state Constituion, meaning the supreme law of the state, and as far as I can tell, no amendment has been passed to revoke this particular clause.
A credit card purchase is a credit sale, so, smelling a rat, I emailed Wal Mart and asked what my interest rate was. They responded (and I even have a screenshot of this email to prove it, in case they hack my Wal-Mart email account and modify their response) that my APR is 24.99%.
I understand that corporate juggernauts like Wal-Mart like to twist laws such as this to create loopholes, but this part of the state constitution seems perfectly cut and dry. You cannot really ask the court or jury "what is 'just compensation?'" or "what is an 'unreasonable search and seizure?'" The only way this clause can be manipulated is if the dictionary definitions of "contract," "credit sale," "rate of interest," "seventeen," "annum," "principal," or "interest" were as vague as "reasonable" or "just," but they are not; this clause is exceptionally cut and dry. Even if the judge wanted to, I am hard pressed to see how he could manipulate the wording of this clause to give Wal-Mart the advantage without inciting a riot (although, I won't say that to the jude's face, for obvious reasons).
Since Wal-Mart is also in Arkansas, state law applies here. Also, even if they use a bank from another state (which they probably do), I believe I have met the minimum contacts requirement to sue on my "home turf," for lack of a better term., especially considering the only contact I've had with the out-of-state bank has been either on the Internet, or through my local Wal-Mart store.
Would I have a chance at a small-claims suit, so I do not have to go through the expense of a lawyer, jury screening, and all that? Arkansas small claims court is for cases less than $5,000, and they must be over certain types of cases, usually breach of contract. However, if I were being sued for, say, defaulting on a credit loan, it would be perfect in small claims court. Does it also work the other way around?
EDIT: Also, before anyone says "If this was illegal they probably would have seen it by now," remember all these fortune 500 companies who need federal bail outs because of their executives overlooking problems much bigger than this. Besides, I don't know anyone (even lawyers that I've talked to) who actively reads the state consitution the way people read Harry Potter. It's entirely possible that this is just another oversight.

