WASHINGTON—Credit card issuers would be barred from setting interest rates higher than 18% under a new bill.
Sen. Josh Hawley (R-MO) is sponsoring the Capping Credit Card Interest Rates Act, which, in addition to the APR cap, would also block credit card companies from introducing new fees aimed at evading the cap and penalize lenders with annual percentage rates that exceed 18%, CBS News reported.
“Hawley's bill comes as Americans are grappling with record-high credit card rates while carrying slightly more than $1 trillion in card debt,” reported CBS News, citing Bankrate data. “The average credit card rate has been inching toward 21% for the past three months and was 20.68% (recently), making it more expensive for consumers to carry balances.”
The current interest rate cap for FCUs is 18% under NCUA regs.
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