Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) today introduced legislation to cap credit card interest rates at 10%, as suggested by President Trump during his campaign for office.
According to a joint statement by the two senators, the proposed bill would immediately cap credit card rates upon becoming law. It would remain in effect for five years.
Trump last year proposed capping credit card interest rates at 10% “to provide temporary and immediate relief for hardworking Americans.” The president has not indicated whether he will support the bill.
In a statement, ABA President and CEO Rob Nichols said consumers benefit from a highly competitive and vibrant credit card market, and the bill would only serve to limit their choices.
“As history makes clear, this proposal would result in the loss of credit access for the very consumers who need it the most, forcing them to use less-regulated, more risky alternatives including payday lenders and loan sharks,” Nichols said. “Congress has rejected these kinds of government price controls in the past, and we urge lawmakers to reject this misguided proposal.”
