WASHINGTON—Sen. Bernie Sanders (D-VT) has seen strong interest in a proposed credit card rate cap of 15%, but support declines when consumers learn of other potential fallout from the plan. Sanders has previously supported such caps, but his most recent proposals are getting new attention as he remains among the leaders for the Democratic nomination for president.
The average rate on credit cards is slightly higher than that, and many cardholders pay an even higher rate, making it difficult to pay off large balances, noted Consumer Affairs.
While consumers like the idea of a cap, a new survey from CompareCards finds support goes down when consumers are told how such a cap would affect credit.
Eighty-three% of respondents support the concept of capping credit card rates at 15%.
But the support falls to 51% when consumers learn that the cap would make it harder to qualify for a credit card, Consumer Affairs noted.
Other Findings
Other study findings:
- About half of American cardholders (53%) said they support a proposal from Sen. Sanders and Rep. Alexandria Ocasio-Cortez’s (D-NY) to cap rates at 15%. Another 26% said they support a cap but think the maximum rate should be lower than 15%, and another 8% support a cap, but think the maximum rate should be higher than 15%. In all, just 14% said they didn’t support any form of the proposal.
- When asked broadly about rate caps rather than about a specific proposal, 83% said they feel there should be a cap on the rates a financial institution can charge on a credit card.
- 51% of cardholders said they would support a rate cap if it meant people with imperfect credit would have a significantly harder time obtaining a credit card, while just 18% said no. (21% said they didn’t know; 9% didn’t answer.) Boomers were the most likely age group to agree.
- 47% of cardholders said they would support a rate cap if it meant credit card rewards might get reduced significantly, while just 27% said no. (17% said they didn’t know; 9% didn’t answer.)
- 77% of cardholders agree that there should be more laws and/or regulations in place to protect cardholders, while just 9% disagreed. (That’s down slightly from 79% in a previous survey.) 85% of Democrats agreed, as did 73% of Republicans.