Credit Card Rate Control
Senator wants 15 percent credit card interest rate cap
March 16th, 2009 @ 7:00am
by Jon Zimney/KTAR
If you're sick of rising credit card rates you will like a piece of legislation just introduced.
It's not fair what credit card companies and some banks are doing, said Senator Bernie Sanders.
"The middle class is really hurting, people losing their jobs, they need some help. And we're going to put as much pressure on my colleagues in the Senate and in the House to get this passed."
The Vermont Independent wants a 15 percent interest rate cap on all consumer loans including credit cards.
He expects his proposal will ruffle the feathers of the nation's biggest creditors, like Bank of America, Wells Fargo and American Express which have recently given notice about rate increases. "The people who will be the naysayers are in fact that same large
financial institutions who are ripping off the American people." And, in some cases, he said they're padding the pocketbooks of politicians.
"Of the last 10 years, the largest financial institutions in this country have put some $5 billion; I know that's a hard to believe number, but $5 billion into campaign contributions and lobbying." Sanders went as far as to call what some are doing -- as loan sharking -- especially in light of all the bailouts. "At the same time that the
large financial institutions are getting almost zero interest loans from the Fed, these large Wall Street firms and credit card companies are charging the American people 15, 20, 30 percent interest rates on their cards." In fact, he said Citigroup recently notified its cardholders their rates could soar to almost 30 percent if a single payment is missed. Sanders also pointed out the nation's credit unions have been working with an 18 percent rate cap since 1987.
Last edited by AGEsAces on Fri Mar 27, 2009 12:07 pm; edited 1 time in total
