10% interest rate cap on credit cards?

[Joe_Black_Sr]

There is no indication that the president has that kind of power and it probably would be difficult for Congress to pull it off. No one is mandated to get and use a credit card. There are way too many card companies gor them to collude and if it were profitable to issue cards at 10% there would be companies competing for that market. Even the elite cards do not have rates much below 10%. There is a reason that rates need to be that high. If CC rates are capped at 10% few people will have access to them. My son owns a small commercial lender. His primary customers are businesses that the banks won’t lend to. If he were capped at 10% many small businesses would either not be established or they would go out of business. It’s risky what he does, but he had rehabbed a number of businesses and wound up owning a few of them. He doesn’t want to own them, but it happens. He would be a casualty if a cap was put in. The real problem, as someone already pointed out, is that CC debt is a lifestyle choice. Credit cards are not a second income. When the government starts capping prices, they will also cap wages. And, we learned in the 70’s that can be a disaster! It’s always good to put pressure on all lenders to be fair, but we do not want the government become our bank, or our parents.