X-Nico

Smiley v. Citibank

"I certainly didn't imagine that someday we might've ended up creating Frankenstein," he told PBS's Frontline a decade later.

•

Barbara Smiley, a California woman who had filed a class action against Citibank's South Dakota subsidiary in her state's courts in 1992 alleging that the $15 late fee she was charged for her Citibank Classic card violated California law.

•

"It's a big victory for the 97 percent or so of cardholders who pay their bills on time," said a Citibank spokeswoman.

•

In 1980, Citibank took advantage of that decision and moved its money-losing credit-card operations to South Dakota, after persuading that state's legislature and governor to repeal its anti-usury law.

see also