April 14 (Bloomberg) -- Massachusetts will withdraw more than $231 million of state funds from a Bank of America Corp. account because the lender refuses to cap credit-card interest rates at 18 percent, State Treasurer Timothy Cahill said.
The decision follows a meeting the Greater Boston Interfaith Organization held with Bank of America asking the lender to comply with the state’s usury law, which caps rates at 18 percent, Cahill said in an interview yesterday. When the bank refused, the state said it would invest its funds with banks and other companies willing to follow the rate limits, Cahill said.
“I understand everyone has got to make money, but I think 18 percent is very reasonable, especially when that’s the state law,” Cahill said in the interview.
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