The 15 percent cap on credit card interest rates would be the same as the one Congress imposed on credit unions in 1980, said Sen. Bernie Sanders . By Renae Merle Renae Merle Reporter covering white-collar crime and Wall Street Email Bio Follow May 9 at 11:15 AM Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez will introduce legislation on Thursday to cap credit card interest rates at 15 percent, a steep reduction from current levels.
In addition to a 15 percent federal cap on interest rates, states could establish their own lower limits under the legislation. The 15 percent cap would be the same as the one Congress imposed on credit unions in 1980, Sanders said. For borrowers with high credit scores, the average rate was 17.73 percent last week, compared with 16.71 percent a year ago. For those with poor credit scores, the average is now about 24.99 percent, compared with 23.77 percent a year ago.The difference in the increase is about 20 basis points higher for customers with a low credit score. A basis point is a common way to measure changes in percentages.
That would be a good start. The 29% limit is outrageous.
How would the bankers survive on “only” 15% ?
MikeOkuda Considering the current rates are usury, and I never miss a payment, this is one thing these two idiots have said I agree with.
Do these idiots think interest rates are just arbitrary?
shaunking I think we need to address pay day loans, not the credit cards. Let’s focus on the most egregious examples and find ways for poor people to build a credit rating with alternative access to small loans.
Good idea, that's better than stock market rates, credit cards are ripping everyone off.
That does seem high enough. Lending needs more regulation. Trump is letting predatory lenders rob America.
Another stupid idea from Idiotic Bernie and AOC..These are not radical ideas they are plain stupid..... Interest rates reflect competitive outcomes that include the risk characteristics of borrowers.. Government regulation of this would fail as the government sucks at everything
cwillott It’s smart!!! Good, we should do this.
Maybe Bernie and AOC could start a credit card company and show all those greedy credit card companies how it’s done. We’re watching.
shaunking
sweetgreatmom
shaunking And JoeBiden wants to cap them at...?
shaunking Great idea.
Thank God. Finally.
How about capping credit card limits at $10k instead?
When I asked a bank rep. once about how they could justify a 29% max. credit card rate I was told they needed some way to motivate people to pay their card. Call me old-fashioned, but why not just break their legs?
Wow ... how radical ... yawn.
I wish this was in effect when I was in my early twenties... I made very foolish inexperienced mistakes with credit cards, accepting high rates credit cards was possibly the worst of them all.
Why? If you don't like your 16% rate, don't use your card. Find a bank that offers 9%
15% is still outrageous
more stupid leftist policy: the issue is defaults, not interest rates. address defaults and rates drop, simple. as. that.
huh? where have we seen this movie before? 🤔
Wait!! How else are the banks supposed to cover huge losses from customers like realDonaldTrump but on the backs of the working poor? /sarcasm
Read part nine of this megazine
I'll take the 'How to stop banks from lending to less than ideal customers. Meaning, those who are not rich with excellent credit.' for $200. Make AOC bartend again.
Lost in the weeds.
zero surprise here
I'll take the 'How to stop banks from lending to less than ideal customers. Meaning, those who are not rich with excellent credit.' For $200. Make AOC bartend again.
Yes I'll take the 'How to make banks stop lending to less than ideal customers. Meaning rich people with excellent credit for $200.' Both of them are retarded. Make her bartend again
I am cool with them dropping any card they have over 15% interest rate. I am an adult and I will decide what is best for me.
Where is the Christian Right defending this law to punish the mortal sin of usury
Bernie and Ocasio-Cortez want to stop banks from giving credit cards to the poor?! Wow... That seems harsh! 🤨 What? I am NOT supposed to know the `100% guaranteed obvious outcome of this action? 🤷♂️ Sorry... I'm not stupid enough to not know.
Lol. Half of me wants a president Sanders just so I can watch him destroy the country with his idiotic policies.
SenSanders & aoc repaoc are RockStars! AOC Bernie2020
Nice to be reminded that the Democrats can be batshit crazy too sometimes
Is this such a stupid policy I can’t even think about. You would block practically all poor people from accessing credit cards.
Banks are preparing for the next recession?
This will be a disaster for people like me who use credit card rewards for things like cash back and travel points. Can almost guarantee banks will eliminate some of those great perks on their cards.
SenSanders & aoc repaoc are RockStars Aoc Bernie2020
Will that move result in some higher risk individuals from obtaining a credit card?
If you have bad credit most of the time you cant get a card, but there are ways to help your credit score to get a card, so yes cap cards at 15%.
And that means they’re worthy of a vote because... why exactly? They finally used common sense? If that’s true then half of America should hold office
This isn’t consistent with Bernie’s philosophy, the reason rates are high is that it helps to cover delinquent, high risk and fraudulent accounts...Cap the rates and high risk people won’t get credit...you’d think he’d want credit for everyone...
Bernie Sanders and Alexandria Ocasio-Cortez will soon be handing out buttons saying, 'Whip Interest Now (WIN).' [Note to Millennials: Google 'Whip Inflation Now' for context.]
They need to stay out of our lives.
AOC isn’t running for president though
These two are out of their minds. Make that cap and all it will do is prevent those with poor credit from getting credit cards of any kind.
Americans do you want that?
Go Barney!
Free credit cards for everyone
There is a risk-premium for a reason, as too many borrowers on credit cards default. Frankly, I don't pay attention to my credit card interest rate, as I pay off the balance every month using it as a 'convenience card'.
STAY OUT OF PRIVATE BUSINESS, YOU DOLTS
How about we tie it to the federal minimum wage + 2.0%? $7.25 + 2.0 = 9.25 percent credit card interest rate Sounds fair to me!
Next stop , cap the rents
How about prime plus 2 or 3?
What's wrong with that?!
If those two got what they wanted, A 'Democratic' Socialist System here in America, nobody could afford credit cards, so rates wouldn't matter.
A great suggestion but lobbyists will never let happen
By decree, or by some piece of legislation that passes? More minority posturing.
Sanders and Cortez are right. The credit card companys are charging Loan Shark and Bookie rates. A better deal can be had from Louie 'Da-Eyes' at the Monti Games.
Why not?
That's just silly.
I put a $5000 dollar charge on a credit card that caused a $104 interest charge. Pretty steep for two weeks. I dropped them after thirty years. It wasn't the same bank anymore.
I want to cap their stupidity at 15%. The result of that will be that every CC will have 15% interest rate. Ban interest? Yyou will either lose services or your bank account will cost a lot more than now. Keep these two morons away from other people's lives & money.
Sounds good to me!
maybe they are just pretending to want to cap credit card interest rate at 15% so that they can create a divisive binary wedge between them and the evil 'establishment' dems who might compromise by compromising at 15.1 or 15.2% cap on credit card rates maybe they are full of sht
😲😲😲
Why are they so obsessed with the number 15?
Hell, go for it...Make it 5%. Make mortgages interest free.
Thank God.
About time
Sure sounds like Socialism to me.
This will negatively effect the poor when credit is denied to those that need it most, but what do AOC or Commie Bernie care about the poor?
Why not!!!lets go and change the taxes on a fixed level...I am not kidding!! This country had a revolution over half a pence on liquor..what about us with taxation, taxation, taxation..time to CHANGE and give people their dues!!
If they have a plan to cap income tax at 15% then I'll be interested.
As a layperson I’m not sure what the potential downsides of this would be...but on the surface it’s a welcome change.
How about 10%?
Can you make it 12%? Even better!
That's fine, but we are NOT Islam sympathizers. GAME OVER!
He should be kicked out of the Democratic primary!
Before anyone says it’ll be harder for people to get credit, stop. Credit card companies are still gonna scam, because that’s what scammers do.
No one forces consumers to have a credit card & from my experience with them the rate can be negotiated when you pay your bills on time & aren't a credit risk
Interest rates above 3% are parasitic.
Mmm yeah, that’s not going to happen.
יודו !!!
They want to change the usury laws. I think they are controlled by the states.
It needs to be tied to a market index, not flatly capped. AOC
no they don't
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Sanders, Ocasio-Cortez Propose 15% Cap on Credit-Card InterestThe two self-identified democratic-socialists are set to propose legislation on Thursday capping rates on credit-card and other consumer loans and letting post offices offer low-cost basic financial services, such as checking and savings accounts and loans. An outline of the plan released ahead of their
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Sanders, Ocasio-Cortez team up in bid to cap credit card ratesSen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez joined forces on a proposal to cap the interest rates consumers pay for credit cards and other loans Ok I can support this What about pay day loans? If they had a plan to cap income tax at 15% then I'll be interested.
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