Senators Bernie Sanders and Josh Hawley have introduced a bill that would cap credit card interest rates at 10%. The proposed legislation aims to provide relief to working people by limiting the high fees charged by financial institutions.
Currently, the average credit card interest rate is over 20%, with some issuers charging as much as 25% in certain cases. Sanders and Hawley argue that such high interest rates are unfair and constitute extortion.
The bill would be effective for five years, but it’s unclear whether industry lobbyists will support it. The American Financial Services Association has already expressed opposition to the measure, stating that rate caps are “unworkable” and can limit consumer choices.
Credit card debt in the US continues to rise, with Americans owing over $1 trillion by the third quarter of 2024.
Source: https://eu.usatoday.com/story/news/politics/2025/02/04/bill-cap-credit-card-interest-rates-senators/78223935007