Donald Trump The government wants to temporarily cap credit card interest rates at 10 percent, according to reports on Wednesday. post According to X's official account Trump campaign.
According to the Wall Street Journal, Trump floated the idea at a campaign rally in New York. Reported Thursday (September 19th).
“I'm going to put a temporary cap on credit card interest rates until working Americans catch up. I can't let them charge 25 percent or 30 percent interest,” he said, according to the report.
The report noted that average credit card interest rates hit 21.5 percent in May, approaching a 10-year high. Federal Reserve SystemSince 1994, the average rate has never fallen below 10 percent in any period for which data has been collected.
Even individuals with the highest credit scores reported median interest rates of 23 percent at large banks and 15 percent at small and medium-sized banks, the report said. Consumer Financial Protection Bureau (CFPB).
of American Bankers Association The ABA said in a WSJ report that interest rate caps limit consumers' access to credit, forcing them to turn to payday lenders, loan sharks and other riskier alternatives.
in Position Statement On its website, which covers interest rate caps in general, the ABA says that while interest rate caps sound attractive, they can limit access to credit and have negative economic effects.
“Arbitrary caps do not reduce consumer and business demand for credit, forcing borrowers to turn to payday lenders and other less regulated sources of credit, including the black market,” the statement said.
Previous proposals by lawmakers to cap credit card interest rates have not garnered support. Bernie Sanders Sen. (Vermont, Independent) proposed a 15% cap. Josh Hawley A Republican from Missouri has proposed a cap of 18%, the WSJ reported.
When he introduced his bill proposing the cap in 2019, Sanders said in a press release that at the time, banks could borrow money from the Federal Reserve at an interest rate of less than 2.5%, and the median Credit Card Interest Rates It was 21%.
Hawley will introduce the bill in September 2023. Credit Card Interest Rates At a time when interest rates on many major credit cards are exceeding 30% for the first time, this is a “reasonable level.”
“Americans are being crushed under the weight of record credit card debt, and big banks are getting richer,” Hawley said in a press release at the time.
