rssHouse Bill Would Cap Credit Card Rates at 16 Percent
Wednesday, November 25, 2009 at 10:09 am
- 17 Comments
Equating today’s rising credit card rates to usury, several House Democrats today announced plans to introduce legislation capping credit card rates at 16 percent.
“Things were a lot better for the average person in this country when we had usury caps,” Rep. Louise Slaughter (D-N.Y.), head of the House Rules Committee, said in a statement announcing her bill. “Watching how credit card companies have exploited people by increasing rates up to 30 percent and more is criminal and this bill will allow us to put an end to this practice.”
Massachusetts Democratic Reps. John Tierney and Michael Capuano will co-sponsor the bill.
They have a tough road ahead, for several reasons. (1) Even though it was the finance industry that was primarily responsible for the recent global economic meltdown, there’s a growing reluctance on Capitol Hill to apply strict new regulations just as the banks are re-stabilizing — a circumstance the banks are already celebrating. (2) Although Congress was successful in passing sweeping credit card reforms in May, an amendment to cap interest rates at 15 percent was killed in the Senate. And (3) the banks aren’t going to allow Congress to squeeze a profit source without coming up with creative ways to make up the difference elsewhere. This, The New York Times reported yesterday, is what’s happening in Australia, where card issuers have responded to new regulations by attaching new fees to airline tickets, among other purchases.
“[I]f regulators limit one fee or rate, banks are likely to find another way to keep revenue flowing,” The Times wrote.
17 Comments
Pingback posted November 25, 2009 @ 11:35 am
[...] Senate. And (3) the banks aren’t going to allow Congress to squeeze a profit source … Go to Source Related Posts:Banking lobby lament: Put down your pitchforks – SalonGOP senators block effort to [...]
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[...] in Business, Congress, Daily life, Government at 2:15 pm by LeisureGuy Mike Lillis in the Washington Independent: Equating today’s rising credit card rates to usury, several House Democrats today announced [...]
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[...] Rules Committee Chairman Louise M. Slaughter is reportedly working on legislation that would cap credit card interest rates at 16 [...]
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[...] Equating today’s rising credit card rates to usury, several House Democrats today announced plans to introduce legislation capping credit card rates at 16 percent. “Things were a lot better for the average person in …Read Original Story: House Bill Would Cap Credit Card Rates at 16 Percent – The Washington Ind… [...]
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[...] Equating today’s rising credit card rates to usury, several House Democrats today announced plans to introduce legislation capping credit card rates at 16 percent. “Things were a lot better for the average person in …Read Original Story: House Bill Would Cap Credit Card Rates at 16 Percent – The Washington Ind… [...]
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[...] statement announcing her bill … John Tierney and Michael Capuano will co-sponsor the bill. Go to Source Related Posts:House Bill Would Cap Credit Card Rates at 16 Percent « The …House Bill Would Cap [...]
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[...] House Bill Would Cap Credit Card Rates at 16 Percent – The Washington Independent.comLouise Slaughter (D-N.Y.), head of the House Rules Committee, said in a statement announcing her bill John Tierney and Michael Capuano will co-sponsor the bill. [...]
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Comment posted December 23, 2009 @ 5:09 am
I remember when they removed usury laws in AR back in the late 70's and my Sears card went from 10% to 25% overnight without even letting me know.
The entire mess has come from “deregulation of industry”.
As an aviation worker for 30+ years I have watched that industry fail almost completely in this country. Most other industries have used that extra funds to move offshore and pad the CEO's pockets. Capitalism is a sin.
Comment posted December 23, 2009 @ 10:09 am
I remember when they removed usury laws in AR back in the late 70's and my Sears card went from 10% to 25% overnight without even letting me know.
The entire mess has come from “deregulation of industry”.
As an aviation worker for 30+ years I have watched that industry fail almost completely in this country. Most other industries have used that extra funds to move offshore and pad the CEO's pockets. Capitalism is a sin.
Comment posted March 15, 2011 @ 6:50 am
if you cap the rates on credit cards. people in need will go to loan sharks. then the loan sharks such as the neighborhood bombay will make a killing.
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