Banks, Credit Unions Urge Senate to Reject Poison Pill Amendment to Impose Government Price Controls on Credit Cards

WASHINGTON, D.C. – Leading financial groups that represent banks and credit unions of all sizes today sent a letter to Senate Majority Leader John Thune (R-S.D.), Senate Minority Leader Chuck Schumer (D-N.Y.), and all other Senators urging them to reject a poison pill amendment to the GENIUS Act introduced by Senator Josh Hawley (R-Mo.) that would create a 10 percent annual percentage rate (APR) cap for credit cards, a measure that would severely restrict the availability of this type of credit for hardworking Americans.

As outlined in the letter, Sen. Hawley’s proposal would harm the very people the legislation seeks to protect:

“Many consumers who currently rely on credit cards would be forced to turn elsewhere for short-term financing needs, including pawn shops, auto title lenders, or worse – loan sharks, unregulated online lenders, and the black market." 

This reduction in credit would have negative ripple effects on not only consumers who rely on credit to help make ends meet, but the broader economy as a whole: 

“Other research demonstrates that when consumers lose access to credit, they often reduce spending on essentials such as healthcare, education, and food, and are more likely to fall behind on bill, mortgage, and rent payments. Lacking a credit card would also likely reduce their consumption of items like furniture and clothing which not only negatively affects consumers, but also negatively affects the broader economy."

To read the full letter, click HERE.

CBA Advocacy

• To read what researchers are saying about how and why APR caps would harm consumers and limit choice, click HERE.
• To learn more about how rate caps hurt the very consumers they’re supposed to protect, click HERE.
• To read our blog post examining the myths and facts of how credit card interest rate caps harm consumers, click HERE.