President Trump has proposed a one-year cap of 10% on credit card interest rates. Senate Majority Leader John Thune and Speaker Mike Johnson have voiced skepticism.

“I think that would probably deprive an awful lot of people of access to credit around the country,” Thune told reporters. “Credit cards would probably become debit cards.”

A number of trade groups also pushed back, saying “[E]vidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small businesses who rely on and value their credit cards, the very consumers this proposal intends to help. If enacted, this cap would only drive consumers toward less regulated, more costly alternatives.”

In other news related to credit cards, Senator Roger Marshall (R-KS) and Senator Dick Durbin (D-IL) announced on Tuesday that they have reintroduced the Credit Card Competition Act, which seeks to limit credit-card merchant fees. They highlighted that they have secured the endorsement of President Trump.

Author: sdbrownlow

Student of Design