WASHINGTON—What was once considered Trump campaign rhetoric—a 10% cap on credit card interest rates—has now been proposed by two senators.
Sens. Bernie Sanders (I-VT) and Josh Hawley (R-MO) have introduced legislation to cap credit card interest rates at 10%, the ABA Banking Journal reported.
As CUToday.info reported, Donald Trump first suggested the cap 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, the ABA Banking Journal noted.
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 in the ABA Banking Journal report. “Congress has rejected these kinds of government price controls in the past, and we urge lawmakers to reject this misguided proposal.”