Ezra Klein has linked to an absolutely marvelous article in the Columbia Journalism Review detailing the mechanics of the credit industry's shift over the last thirty years or so. I've been meaning to post it for days with a long commentary and haven't so I am posting it now with a brief, but very fervent recommendation and a quote from Klein's explanation:

To be clear: Before 1978, credit practices were regulated by state. After 1978, they were tied to whichever state the bank was based in. This, of course, kicked off a search for the state with the laxest usury regulations, and a race to be that state and get all the new banking jobs. South Dakota won, and a few of the more devious tricks of the credit industry are a direct result.

He also points out that this is clearly analogous to a regulatory issue that is being discussed in health care about allowing health insurance companies to follow only the regulations of the state in which they are based. Perhaps learning from the past would be appropriate in the case.