Two senators are planning to introduce a bill on Tuesday to impose a tight limit on CreditcardeVrente, so that a proposal is re -read that will certainly pull howling of banks and other lenders.
A lid on credit card rates has been a types of white whale for consumers and others for generations, with efforts that fail during the administrations of presidents George HW Bush and Barack Obama. The idea received new life in September when President Trump, then on the campaign track, said that he supported a temporary 10 percent limit on the credit card rates “while catching up working on Americans.”
That exact limit is included in Tuesday's legislation to change the truth of 1968 into the credit law, proposed by two senators who are typically not ideological allies: Bernie Sanders, the Vermont Independent, and Josh Hawley, Republican of Missouri. Both took part in earlier attempts to impose a limit.
The average credit card rente is now more than 20 percent, according to Bankrate. The metric has risen over the past decade; At 22.8 percent in 2023, credit card companies charged their highest rates since the Federal Reserve started to collect data in 1994.
The new limit would fall into 2031, after Mr Trump's period. The White House did not respond to a request for comment on whether the administration would support it.
“We cannot continue to allow large banks to drop Americans by paying outrageously high credit card rent,” Mr Sanders said in a statement. Mr Hawley, who has formed himself a populist about economist issues, described the current interest rates as 'exploiting'.
The proposal can be calculated on producing a vague reaction from the banks and the credit card industry. Bank lobbyists ran hard last year against Mr Trump's comments and argued that they should charge the costs high enough to reclaim losses from borrowers who do not repay their loans.
The American Financial Services Association, a trade organization for credit card publishers, has said that tariff caps are “unworkable” and “actually harm the policy makers of consumers who are trying to help tens of millions of Americans, depending on more than ever more than ever . “
Republican and libertary policy makers and researchers tend to agree.
As always with Mr Trump, traditional boundaries cannot hold. The Minister of Finance, Scott Bessent, was asked last month during his confirmation hearing whether he would rely on a limit on Creditcardente.
He did not commit himself to a position and said he would go back what the Lord Trump decided.
