Credit Card Interest Rate Cap Back on the Table
A few weeks back we reported on Senator Chris Dodd’s attempt to freeze all credit interst rates until the new credit card laws take effect next year.
That measure was blocked in the Senate, but Bloomberg.com is reporting that two Democrats in the House are trying to push through a bill that would set a strict cap on credit card interest rates and fees.
Louise Slaughter of New York and John Tierney of Massachusetts proposed a new set of credit card rules which would include the following:
- Interest rates capped at 16 percent on credit cards
- Late fees and over-the-limit fees capped at $15
Back in May, while Congress was debating the new set of credit card laws, a 15 percent interest rate cap was rejected.
But for many people, a 16 percent interest rate would be an improvement. Said one of the new bill’s sponsors:
“We must do what we can to help people who are trying to make ends meet in the face of card rates that suddenly jump to 20, 25, 30 percent or even more,” said Slaughter, chairwoman of the House Rules Committee. “It’s time for Congress to put the needs of people ahead of banks and card issuers.”
We’ll keep an eye on these measures and let you know if they pass.