What they don’t get is that if you cap it, it means those high risk people simply won’t qualify for cards.
One of the things that caused the financial crisis is the government forcing banks to give mortgages to high risk people because of fairness.
What idiots.
The banks would be like Oprah......
You get a fee, and you get a fee, fees for everyone !
During the financial crisis, CC companies and banks cancelled many lines of credit. The same would happen again if this legislation were passed.
Yeah but standards are racist don’t you know?
True, but maybe that’s not a bad thing.
Also, wasn’t there a day when usury laws would prohibit interest rates this high?
On the other hand, capping interest may spark the re emergence of loan sharking.
And that would be racist.......or something.
Or they will charge vendors more of a percentage, and vendors will pass the cost onto consumers.
The government trying to mandate price controls (or in this case, capping interest rates) always accomplishes the same thing. The supply of product or service becomes scarcer.
$15 min. wage means some jobs will be eliminated.
Hawaii (liberals) capped gasoline prices a few years back with disastrous results. They had lower gases prices alright but no supply of gasoline. Duh.
And like you said, capping interest rates on credit cards will mean those riskier credit customers will get no credit cards at all.
What they don’t get is that if you cap it, it means those high risk people simply won’t qualify for cards.
It’s not a reduction of interest rates, as much as it is a ban on people who have high risk getting offered any credit at all.
As unsecured debt, the risk of default is exceptionally high.
High rates are the result.
Nobody makes you use a credit card, it’s a short term loan, and a privilege, not a right. The banks charge the same rates for other unsecured loans. What’s the difference?
This is just they’re first move. Next, they’ll say that credit cards are a right, and will mandate credit card companies to issue them, regardless of credit.
“” “” What they don’t get is that if you cap it, it means those high risk people simply won’t qualify for cards.”” “”
When they have an idea of such caps making it mandatory for banks to give away cards to anyone is only a logical next step. That’s Marxism in a nutshell.
Yep - a credit card is basically a signature loan with no collateral...I can see the companies limiting the credit lines to $1K for these folks who use it like an eternal loan with no intention of paying it back....the commercials that claim they have “Information the credit card companies don’t want you to know because you don’t have to pay them all back...” piss me off - and are a reason the interest rates are so high...
Responsible folks use the credit card for regular purchases and pay it off each month and rarely carry a balance for “luxury” items.