CBA Statement on Misguided Legislation to Place Government Price Controls on Credit Cards

WASHINGTON, D.C. – Consumer Bankers Association (CBA) President and CEO Lindsey Johnson issued the following statement in response to misguided legislation introduced by Senators Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) that would place government price controls on credit cards, a measure that would severely restrict the availability of this type of credit for everyday consumers:

“Price-setting is political pandering that has, time and time again, proven to harm Americans. 

“Research clearly shows that when politicians, rather than the free market, dictate prices, consumers ultimately pay the price through limited choices outside the well-regulated banking system. For example, one in nine Missourians already uses payday loans, almost double the national average. Those consumers pay annual interest rates of more than 300 percent because of their lack of access to bank credit. 

“While these government price fixing proposals may be a good political soundbite, as was proven during the Biden Administration, they stand to harm the very consumers they purport to help. These Socialist-type pricing policies are the best way to drive up costs for consumers and push access to credit further out of reach for millions of consumers.”

CBA Advocacy

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