Josh Hawley, Bernie Sanders suggests limiting credit cards to 10%

A new Bipartisan -Bill proposal introduced by a couple of senators would capital credit cards in an attempt to help consumers and fulfill one of the president Donald Trumps Campaign promises.

Sens. Josh Hawley, R-Mo., And Bernie SandersI-vt., Introduced legislation that would chapter to credit interest on 10% immediately after the law’s adoption in the law. The cap will then remain in effect for five years.

“During the campaign, President Trump promised to capital credit cards of 10%,” Sanders said in a statement. “Today, I am proud to introduce bipartisan legislation with senator Hawley to do just that.”

“When large financial institutions charge over 25% interest on credit cards, they do not deal with making credit available. They deal with extortion and loan shark,” Sanders added. “We cannot continue to give big banks the opportunity to get huge profits ripping the American people.”

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Credit cards would be limited to 10% in five years under Sanders-Hawley Bill. (istock / istock)

Said Hawley In a statement that covering credit cards of 10% as Trump fought for “is a simple way to give meaningful relief to working people.”

“Working Americans are drowning in record credit card debt, while the biggest credit card issuers get richer and richer by wandering their interest rates to the moon,” Hawley added. “It’s not just wrong, it’s utilizing. And it has to end.”

Senator Josh Hawley, R-Mo., Said credit card issuers will be “exploitative” with interest. (Tom Williams Pool / Getty Images / Getty Images)

In the last congress, Hawley introduced a bill to capital credit cards of 18%, although it died in the committee without receiving a vote.

The press release from Sanders and Hawley noted that the Trump campaign in September said: “President Trump has promised to hood the interest rate of 10% to give temporary and immediate relief to hardworking Americans who are struggling to get ends to meet and cannot afford For intense interest rates on top of the skyrocketing costs of priority loans, rental, groceries and gas.

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Senator Bernie Sanders, I-Vt., Accused financial institutions with high credit cards for “Loan Sharking.” (Kevin Dietsch / Getty Images / Getty Images)

Critics of suggestions to CAP Credit Character Note that it is likely to cause financial institutions to be more restrictive to expanding credit and offering credit cards to borrowers with relatively poor credit results and potentially by reducing the credit card rewards they offer.

“There is no doubt that a credit card switch would have a massive impact on credit card holders in addition to just reducing interest payments,” said Matt Schulz, Chief Credit analyst at LendingTree. “Banks have been vocal that a rate -cap, even a much less than 10% cap, which is supported by President Trump would lead to a dramatic reduction in credit card rewards and even to reduced access to credit for those with imperfect credit . ”

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“However, it is also clear that most Americans are willing to accept both of these consequences if it means cover rates,” added Schulz, noting that a Lendingtree study from December found that two-thirds of card holders would support a rate. Cap, though it results in reduced rewards, while six out of 10 support it, even if it limits access to credit to many.