Senate Proposes 15% Interest-Rate Cap On Credit Cards

Unfortunately they rejected it.

Did you know one-third of all credit card holders are paying interest above 20 percent and as high as 41 percent?

Despite complaints that banks and credit card companies are gouging customers by charging outrageous interest rates, the Senate on Wednesday turned back an effort to cap interest rates at 15 percent.

The proposal by Senator Bernard Sanders, the Vermont independent, drew only 33 votes and needed 60. A bipartisan group of 60 senators opposed it, though the Senate pushed ahead with other restrictions on credit cards. Some Democrats and consumer groups have said that an interest cap is needed to put real teeth into an otherwise solid bill.

“When banks are charging 30 percent interest rates, they are not making credit available,” said Mr. Sanders. “They are engaged in loan sharking.”

The banking lobby will put up a mean fight, but this is a step in the right direction.

Source: NYT