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The new law in Congress, introduced by a binary of senators, is seeking to impose a credit card interest rate hat, with the possibility that such a bill will help the President. Donald Trump Campaign's commitment to this issue.
Sens. Bernie Sanders, I-VT. , And Josh Hawali, R-MO, set the rules that could Carry Credit Card Rate In 10 % for five years after the bill was passed. The two populist senators did the move as a tool for fulfilling the commitment to the election campaign last year.
Introducing the bill, along with the White House's support for the offer, could come up with the idea, though it will have consequences for the policy and still face a long way to approve.
Matt Schwars, senior credit analyst at Lendingtree, “Credit Card Hats have always been the longest long photographs because many people have queued against it for various reasons, but one should not surprise anyone who is a very popular rate hat . ” , Told Fox Business.
Josh Hawali, Bernie Sanders offers credit card interest rate at 10 %
Credit card interest rates can be considered 10 % under the bill provided by Sanders and Hawali. (istock)
Schwell said Levingtree has conducted a poll showing that respondents continue to support the idea of credit card interest rate hat, even if this means limited access to credit and reduced credit card bonuses.
“It's still a long shot, but there is no doubt that the idea is politically now some wind on its back, and if that happens, that may be as long as it may happen . ” He said
Shules added that credit cards provided by federal charter Credit unions They are in 18 %, which are still awards but are not as profitable as they are provided by larger banks. He further stated that a hat at that level or 20 % for consumers that deal with credit card debt is significant while potentially a better chance of becoming reality.
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Several leading business groups Financial Services Industry He sent a letter to Hawali and Sanders that presented his opposition to the 10 % interest rate on the two -person credit card. The signatories of the letter included the Consumer Banking Association, the US Credit Union, the US Financial Services Association, the Banking Institute, Independent Bankers of the American Society, the American Banking Association and the National Banking Association.
This letter of citation to economic research shows that government price determination in CAPS APR can damage consumers, to some extent because of “accessing credit cards. Millions of consumers And lead them to credit resources that are much more costly and adjustable. “
Senator Bernie Sanders, I-VT. , Financial institutions accused the “extortion” and “shark loan” for having a credit card rate of more than 25 %. (Kevin Dietsch / Getty Images / Getty Images)
These groups pointed out that the state of Illinois imposed the rate of the rate, which Federal Reserve The research was responsible for reducing the number of loans to the borrowers of 38 %. They also pointed to the study of Dartmouth researchers who found that 36 % all APR in Oregon is responsible for “harming, helping consumers on average” and “restricting access, deteriorating the overall financial status of Oregon households.”
“We as well -set as well -regulated financial institutions, we share the goals of reducing consumer credit and increased financial inclusion. Unfortunately, the 10 % rate hat offered in this law will neutralize our joint financial entry goals Reduces access to credit.
Senator Josh Hawali, RS. He said the high interest rate is a “exploitation” credit card and provides them with “meaningful relief”. (Tom Williams Pool / Getty Pictures / Giti Pictures)
Although it is unclear whether Congress will consider credit card interest rates, Schols noted that there are still steps that consumers can take to reduce their financial burden.
“The good news is that there is a lot of work that you can do to reduce your interest rate without expecting Congress to enter the rate as a cavalry. If you have good credit, you can transfer credit card 0 Get % if you can't get a 0 % scales, this is a good option.
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“You can even contact your credit card exporter and ask for a lower rate. Lendingtree conducted a poll last year, where we found 76 % of people who wanted lower interest rates on one of their credit cards one They received the average reduction in Schwles, which is really significant, so it is quite worth the call, because this kind of success shows that only 800 credit points and long song records are not the way to the road. They get themselves – these are ordinary people who really need help. “