AOC Advances Trump's Campaign Pledge to
Cap Credit Card Rates at 10% Under New Law
International Business Times UK,
by
Niloy Chakrabarti
Original Article
Posted By: MaximusP,
3/12/2025 1:14:35 PM
US Representatives Alexandria Ocasio-Cortez, also known as AOC, and Anna Paulina Luna introduced a bill late last week to cap credit card interest rates at 10%. The H.R. 1944 bill aligns with US President Donald Trump's campaign pledge to cap credit card rates at 10%.
'We're making that pledge more than a talking point by introducing legislation to protect working people from remaining trapped under mountains of debt,' Ocasio-Cortez said in a press release
Post Reply
Reminder: “WE ARE A SALON AND NOT A SALOON”
Your thoughts, comments, and ideas are always welcome here. But we ask you to please be mindful and respectful. Threatening or crude language doesn't persuade anybody and makes the conversation less enjoyable for fellow L.Dotters.
Reply 1 - Posted by:
Sanddollar 3/12/2025 1:31:20 PM (No. 1913337)
I cannot see this bill passing. Credit cards are offering people a loan to those who don't pay off their balance. They need to earn enough to pay for those that don't pay it off and those that default on their bills. They make no money off of me as I use the card to buy what I can afford and pay it off each month. If it would pass, then many more people will not be granted a credit card.
16 people like this.
Reply 2 - Posted by:
Safari Man 3/12/2025 1:40:29 PM (No. 1913344)
My foolish older sister pays as much as 25% on some of her loans. She has a serious spending problem. It's truly a mental illness and, I hate to say it, but she needs government protection from those who exploit her condition. She is almost 70 years old and hasn't saved a penny in her life despite earning > $100K/year for the last 30 years (being in a small business of selling window treatments).
9 people like this.
Reply 3 - Posted by:
kdog 3/12/2025 1:50:54 PM (No. 1913346)
You have to think Credit Card debt is the most likely to go into default as there is no collateral whatsoever.
Setting a rate beneath what a credit card company needs to make in order to turn a profit is just going to prevent the people with the lowest credit scores from getting credit. Enough with the nanny state bs. Just because someone offers you a loan with a 28% interest rate doesn't mean you have to take it.
13 people like this.
Reply 4 - Posted by:
Proud Texan 3/12/2025 1:53:44 PM (No. 1913348)
If a limit was to be set, it needs to be a certain amount over the prime rate and 10% would probably not be enough for the credit card company to be willing to lend. They have to make up for nonpaid accounts somehow and it cost money to run their company too. AOC thinks companies have unlimited money just like the government.
11 people like this.
Reply 5 - Posted by:
mc squared 3/12/2025 2:09:32 PM (No. 1913358)
Sounds wonderful until reality sets in.
10 people like this.
Reply 6 - Posted by:
red1066 3/12/2025 3:25:03 PM (No. 1913374)
I see nothing wrong with capping credit card interest rates at 10%. I once had a credit card that had a 29% interest rate on charges. That's no different than a loan shark. It started out at 18%. I only used it a few times, then I got rid of it. There is no excuse to charge interest rates on a credit card over 15% except pure greed. Especially if one's credit card score is over 800.
6 people like this.
Reply 7 - Posted by:
MissMann 3/12/2025 3:25:45 PM (No. 1913375)
This is a bad idea. It's not Constitutional to dictate this kind of thing for private businesses. Find another way: banks attached to these won't be insured, or something. This isn't it.
4 people like this.
Would not capping the interest rate result in fewer credit cards being issued, restricting the availability of credit, even for persons able to pay?
Unintended consequences, anyone? Cortez has a degree in economics from Boston University...... really?
5 people like this.
Reply 9 - Posted by:
cor-vet 3/12/2025 6:08:05 PM (No. 1913436)
Not the governments business. If you are averse to usery don't atake out the credit card. Most cards are set to buy items you want but can't afford right now and aren't willing to wait until you can.
1 person likes this.
Reply 10 - Posted by:
snowoutlaw 3/12/2025 7:10:55 PM (No. 1913464)
I have no idea what interest my cards have, never paid a cent.
Obviously issuing cards is very lucrative or there wouldn't be so many offers.
Putting a cap would probably be a good thing in that those that have bad credit won't be able to get a card and then dig themselves into a credit hole.
0 people like this.
Reply 11 - Posted by:
kono 3/12/2025 7:28:10 PM (No. 1913472)
The old-fashioned habits of deferred gratification, saving up to buy things, using layaway, and paying credit card bills every month are very good at reducing that top interest rate to zero.
3 people like this.
Reply 12 - Posted by:
Corndoggies 3/12/2025 9:42:58 PM (No. 1913518)
Credit card debt exploded under biden. Maybe put that 10% cap on current cc debt but new cards get the going rate.
0 people like this.
Reply 13 - Posted by:
sunset 3/12/2025 9:49:00 PM (No. 1913523)
Next best thing to save the financially illiterate from overextending themselves is to limit lines of credit to about 25% of discretionary income.
2 people like this.
Below, you will find ...
Most Recent Articles posted by "MaximusP"
and
Most Active Articles (last 48 hours)