Sen. Josh Hawley Proposes 18% Credit Card
Interest Rate Cap
Real Clear Politics,
by
Philip Wegmann
Original Article
Posted By: Garnet,
9/12/2023 5:30:24 PM
On the question of credit, the senior Republican senator from Missouri finds himself well to the left of the White House, only slightly less progressive than democratic socialists like Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez, and very much out of step with the business-friendly old guard of his party.
Sen. Josh Hawley will introduce legislation to cap the annual percentage rate of credit cards at 18%, RealClearPolitics is first to report. The average APR, by most estimates, now hovers near the 24% mark.
“Americans are being crushed under the weight of record credit card debt,” Hawley
Reply 1 - Posted by:
weirdone 9/12/2023 5:42:47 PM (No. 1554782)
Should be capped at the Fed Rate.
12 people like this.
Banks pay squat for checking 99% of the time. Banks pay squat plus a widow’s mite for savings. I’d say 7 or 8% for borrowers with a too-be-determined credit rating of xxx.
10 people like this.
Reply 3 - Posted by:
MindMadeUp 9/12/2023 6:02:53 PM (No. 1554794)
Usury was once considered unethical and illegal, the tool of organized crime. Now it's standard business practice for big banks through credit cards. Instead of breaking your knees, they just ruin your life if you can't pay.
19 people like this.
Reply 4 - Posted by:
DougTN 9/12/2023 6:16:31 PM (No. 1554804)
Card issuers will only become more particular with who they issues cards to. Which might actually be good thing. But the unintended consequences for high risk people to build credit will be bad.
4 people like this.
Reply 5 - Posted by:
rockeysroomie 9/12/2023 6:24:38 PM (No. 1554810)
Maybe cap the monies we give to Ukraine too.
24 people like this.
Reply 6 - Posted by:
plomke 9/12/2023 6:25:07 PM (No. 1554811)
We would be better served if the Senator would look after the J6 political prisoners interests...
16 people like this.
Reply 7 - Posted by:
vhs68 9/12/2023 6:30:21 PM (No. 1554816)
Here's a novel idea. Maybe the citizens shouldn't purchase more than they can afford to pay back.
26 people like this.
Reply 8 - Posted by:
RedLegLeader68 9/12/2023 6:43:56 PM (No. 1554824)
**Moron Uniparty Alert**
Devoid of history: in the early 60"s (at least) he doesn't realize that ALL interest (including CC's) was fully tax deductible as were ALL medical expenses.
What's so hard about that ... if you know history?
17 people like this.
Reply 9 - Posted by:
Illinois Mom 9/12/2023 7:04:15 PM (No. 1554833)
We can thank Joe Biden for the usurious rates credit card companies are allowed to charge. I get at least a half dozen credit card offers every day. I always check the rates, then shred them. Yesterday I got one for 34.9%, and we have an excellent 800+ credit score.
14 people like this.
Stand by for the unintended consequences.
5 people like this.
Reply 11 - Posted by:
jimincalif 9/12/2023 7:52:00 PM (No. 1554861)
Unintended but foreseeable consequences - those with poor credit scores will be unable to get credit cards. Capping interest is just a government price control, and as we saw with Jimmy Carter’s gas lines, when the price is capped, supply is reduced. I suppose then the Democrats will call this racist or something, and will propose a government entity to guarantee CC balances for lower income people up to a modest amount. The amount will be raised over time, the eligibility standards will be expanded, and pretty soon the Feds will own the credit card market, just like mortgages and student loans. Another pandemic will be created, and they will “suspend” payments to buy votes. What could go wrong?
6 people like this.
Reply 12 - Posted by:
Venturer 9/12/2023 8:01:37 PM (No. 1554869)
24% is no doubt of that, but who is to blame?
The people who charge everything and pay a minimum.
I have one credit card I use for trips or emergencies and I pay before 30 days are up and get charged no interest.
10 people like this.
Reply 13 - Posted by:
Maggie2u 9/12/2023 8:18:43 PM (No. 1554876)
In Washington state for years the law was 12% interest rate. But the morons who live here voted to remove the limit several years ago. The two biggest banks in the state vowed to leave if the law wasn't removed. Seattle First National...aka SeaFirst and Rainier Bank. Neither one of those banks exist now, bought up by larger banks. Penney's and Sears gave the most amount of money, at that time, to get an initiative passed, which it did.
And poster #8 is correct. We used to be able to deduct all interest paid for the year and ALL our medical expenses, not some stupid percentage the way it is now.
6 people like this.
It is no coincidence that high fee credit card companies are based in Delaware. They poured millions into Biden’s pockets to enact federal laws that protect credit card companies and screw merchants and consumers.
9 people like this.
Reply 15 - Posted by:
anniebc 9/12/2023 8:36:00 PM (No. 1554888)
We need government out of our business. Capping interest rate is not a solution; paying your credit cards off before incurring interest charges IS a solution. You should have seen the line at the DMV today! Everybody in the line, I guarantee you, was there not because they needed whatever they were there to get. Minus government purposes, why do we need a driver's license? Whose idea was it to tax our homes? You could end up paying the government for your home twice over if you live long enough. I fortunately discovered I could accomplish what government needed from me by going online, so out of that line for me! But, I digress.
5 people like this.
Reply 16 - Posted by:
scottj 9/12/2023 8:43:58 PM (No. 1554895)
Credit card interest rates are at mafia levels and they are getting away with it. 18%? How about 8%?
6 people like this.
Reply 17 - Posted by:
snowoutlaw 9/12/2023 8:47:05 PM (No. 1554896)
I have no idea what my CC rate are, never pay any interest so it doesn't matter.
CC companies make something like 4% on every purchase so the interest is not to pay for the card, its to pay for the use of the balance not paid off at the end of the month. These are risky loans with no collateral, if banks lose on the loans they will have to make it up some other way, like not giving cards to those most likely to be late or default and we know who that is. Also monthly fees and lower limits will be used.
5 people like this.
Reply 18 - Posted by:
DVC 9/12/2023 10:05:01 PM (No. 1554919)
Used to be a 23% cap on credit card rates. I once had to pay some of these payments and figured out that that was a REALLY bad deal....so we stopped it.
We haven't paid a credit card interest or a fee in decades. We pay all of them off each month and pay nothing at all beyond the amount charged to the card. Sometimes a card company tries to charge us a fee. I call up to cancel the card, they ask why, and I say, "Because you are charging me a fee. Other companies will not charge me a fee, so please cancel this card and I'll go with a different company." So far, they all stopped charging me, and we pay nothing at all to use the cards. We have a very high credit rating.
4 people like this.
Reply 19 - Posted by:
WV.Hillbilly 9/12/2023 10:17:39 PM (No. 1554923)
No one is forcing anyone to get a credit card. You agree to the interest rate when you apply.
If you don't like it, pay cash.
10 people like this.
Reply 20 - Posted by:
SkyKing1222 9/12/2023 10:21:18 PM (No. 1554924)
“Promote the general welfare “
This is the one of the few non limitations afforded the Federal Government.
The best way to do this in a sane society would be to lawfully limit unsecured debt to 10% of an individual’s previous annual income.
This would drastically reduce preying on human frailties in this area. People then can save, and borrow against their securities for their benefit.
2 people like this.
Reply 21 - Posted by:
watashiyo 9/12/2023 11:10:54 PM (No. 1554944)
Let the market(consumers) decide the CAP, politicians should start worrying about putting a CAP on their government spending before being Primaried.
6 people like this.
Reply 22 - Posted by:
Rinktum 9/13/2023 4:00:59 AM (No. 1555000)
Of course, paying any credit card balance at the end of the month is the way to go. However, have some sympathy for the families trying to get by. It is hard to feed a family now and when they are faced with emergencies as all families are, it wipes out any rainy day fund pretty quickly. The only thing left for them is using their credit cards. Once they are used, the interest is crippling. I honestly do not know how a family of four on an average income survive today. This economy is breaking the backs of good hard working people and frankly, I remember the rough times when our family was hurting due to decisions made by the government to “help us”. While there are only two of us now, when we go to the grocery I amazed by the cost and can’t understand how young working class families make it. What this government has done to the middle class through the lockdowns and runaway inflation is a shame. So many small businesses are closing and people are struggling to make ends meet.
3 people like this.
Reply 23 - Posted by:
Strike3 9/13/2023 4:56:33 AM (No. 1555030)
The rates are astronomical because those who borrow and pay at the high rate are also paying for the credit of those who borrow and don't pay. It encourages the deadbeats to abuse their cards and the banks don't mind so much because somebody is making their profits for them. They can drop those customers and "forgive" their debt because somebody else is paying.
3 people like this.
Reply 24 - Posted by:
mifla 9/13/2023 5:13:13 AM (No. 1555040)
Senator, how about fixing the economy so people don't have to put their debt on credit cards.
4 people like this.
Reply 25 - Posted by:
jeffkinnh 9/13/2023 6:53:37 AM (No. 1555070)
People are worried about people that are "struggling" in this economy and using credit cards to "get by". However, credit, of any type is a BUSINESS and it is NOT an obligation of any business to support people in need. Such support is an obligation of government and charity.
The credit rates are high because of inflation and people not paying their credit debt, i.e. defaulting. By raising their rates, the credit business is keeping itself solvent. If you artificially lock down rates, you will find creditors tightening credit access. People in need will not be able to get credit at all because they are risky borrowers. Creditors will protect their business by blocking access to credit to those risky borrowers. So instead of getting things they need but facing a high cost to borrowing the money, these people will now not be able to get things they need at all.
Let's be clear. A significant reason the rates are high is because of Bidenflation. A 20% rate hit with 10% inflation goes to a 22% rate. Plus the general stress that the administration's policies are placing on the economy raises the RISK of default by low income borrowers. The credit rate rise is partially due to that rising RISK. All the rising rate is due to government actions.
So the government wants to jump in and "fix" things some more. Do you have to wonder how that will turn out?
3 people like this.
Reply 26 - Posted by:
DVC 9/13/2023 12:41:05 PM (No. 1555311)
Re #19. Many things CANNOT be purchased with cash. Try renting a car with cash. No reputable agency will rent for cash, which was extremely inconvenient for me many years ago before I had any credit cards beyond gas company cards.
I doubt you can purchase an airline ticket for cash, but perhaps it is possible, but extremely inconvenient to travel to an airport and stand in line to pay for tickets. Many gas stations don't take cash.
I would like to use cash more than I do, but it is often made at least very inconvenient, and often purchases are impossible or entirely impractical without a credit card.
But you CAN pay them off every month....but this requires LIVING WITHIN your means. THAT is the problem, people who earn $X per month want to spend $X + $500 per month.
2 people like this.
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