Credit card companies ignore Trump's 10% cap

As they should


Capping CC at 10% is going to hurt more than it will help. Credit risk people will resort to payday loans instead. Capping CCs at 10% won't make them suddenly more financially stable and literate and they will still need money in emergencies. CC companies will not take the risk if they can't charge higher rates.

I'm open to the discussion here

But the idea that businesses should just bend their business models in earth-shattering ways to meet the rhetoric of the President is a tad ridiculous

Are you saying that people who manage credit poorly would be cut off?


Like that's a bad thing?

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As they should


Capping CC at 10% is going to hurt more than it will help. Credit risk people will resort to payday loans instead. Capping CCs at 10% won't make them suddenly more financially stable and literate and they will still need money in emergencies. CC companies will not take the risk if they can't charge higher rates.

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Once a person of limited means goes underwater at twenty five to whatever a payday lender charges, that person is not getting out of debt.

It's not just those pople but there are plenty of working-class people who need access to CCs for emergencies. They are credit risk but not because they manage it poorly. They just live check to check, then a transmission goes out or they need tires.

Cap CCs at 10% and their options become Payday loan places, which turns into a never ending cycle to pay off or those tire shops that finance tires and a $600 set ends up costing $2500 after all payments.

You cap CCs at 10% and no banks are going to take the risk on those people. CCs will become a luxury for people who really dont need them.

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Once a person of limited means goes underwater at twenty five to whatever a payday lender charges, that person is not getting out of debt.

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Yep. Those loans are designed to never be paid off. There is a Payday loan place in TN that was sued recently and some of the nefarious things they did would make the mafia blush.

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It's not just those pople but there are plenty of working-class people who need access to CCs for emergencies. They are credit risk but not because they manage it poorly. They just live check to check, then a transmission goes out or they need tires.

Cap CCs at 10% and their options become Payday loan places, which turns into a never ending cycle to pay off or those tire shops that finance tires and a $600 set ends up costing $2500 after all payments.

You cap CCs at 10% and no banks are going to take the risk on those people. CCs will become a luxury for people who really dont need them.

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I think this would apply up the economic ladder. Lots of upper-middle class people who would be too risky for 10% interest CCs, too, who would then be taking out payday loans or provider-based financing themselves and paying 3-10x the interest over time.

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Are you saying that people who manage credit poorly would be cut off?

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Younger people have no credit, so their first credit card is going to be at a higher rate so that they can build credit.

No way!
I Was assured by ksayetiger that this absolutely would happen on the 20th

AI Overview
Yes, credit card companies are heavily regulated at the federal level by agencies like the CFPB and FDIC, under laws such as the CARD Act, which dictates practices for interest, fees, and disclosures, alongside industry standards like PCI DSS for data security, ensuring consumer protection and market fairness.

Key Regulators & Laws:
Consumer Financial Protection Bureau (CFPB): Created by the Dodd-Frank Act, the CFPB has primary authority over credit cards, enforcing federal laws, setting rules, and handling consumer complaints to ensure transparency and fairness.

Federal Reserve: Implemented key rules from the CARD Act to protect consumers, focusing on interest rate changes, penalty fees, and clear disclosures.

Federal Trade Commission (FTC): Also oversees aspects of the CARD Act and other consumer protection rules.

FDIC (Federal Deposit Insurance Corporation): Protects consumers from abusive debt collection and ensures banks adhere to laws on rate and fee disclosures.

Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009: A major law setting rules for interest rate changes, fees, payment allocation, and billing statements.

How They're Regulated:
Consumer Protections: Federal laws mandate clear disclosure of rates (APR), fees, and terms before a consumer applies for a card, and limit certain abusive practices.
Fair Practices: Regulations prevent unfair practices, control when and how interest rates can be increased, and govern how payments are applied to balances.

Data Security: The industry must follow Payment Card Industry Data Security Standards (PCI DSS) to protect sensitive cardholder data.
In essence, federal agencies work with laws and industry standards to create a comprehensive regulatory framework for credit card issuers, impacting everything from processing transactions to consumer-facing policies.