Banks Respond to Proposed Cap on Credit Card Interest Rate

The Administration announced plans today to issue an executive order imposing a temporary 10% cap on credit card interest rates. The Consumer Bankers Association, Bank Policy Institute, American Bankers Association, Financial Services Forum and Independent Community Bankers of America issued a joint statement:

“We share the President’s goal of helping Americans access more affordable credit. At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help. If enacted, this cap would only drive consumers toward less regulated, more costly alternatives. We look forward to working with the administration to ensure Americans have access to the credit they need.”

CBA Advocacy

• To read CBA President and CEO Lindsey Johnon’s recent commentary on the credit card landscape, click HERE.

• To read what subject matter experts are saying about how credit card interest rate caps harm consumers, click HERE.

• To understand the component part that make up an APR, read a CBA Data Desk HERE.

• To read recent research paper exploring the causes of the rise of credit card APRs, click HERE.

• To read CBA President and CEO Lindsey Johnson’s recent op-ed about the perils of credit card interest rate caps and the harm they would have on consumers, click HERE.

• To read what researchers are saying about how interest rate caps would limit consumer choice in the free market, click HERE.

• To learn more about how rate caps hurt the very consumers they’re supposed to protect, click HERE.

• To read an editorial from The Wall Street Journal Editorial Board against credit card interest rate caps, click HERE.

• To read our blog post examining the myths and facts of how credit card interest rate caps harm consumers, click HERE.

• Visit WashingtonWalletWatch.com to learn more about how government price controls on credit harms consumers.