{"id":2041586,"date":"2023-09-22T15:18:02","date_gmt":"2023-09-22T19:18:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hawley-gets-pushback-from-banking-groups-for-bill-to-cap-credit-card-rates-at-18\/"},"modified":"2023-09-22T15:23:16","modified_gmt":"2023-09-22T19:23:16","slug":"hawley-gets-pushback-from-banking-groups-for-bill-to-cap-credit-card-rates-at-18","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hawley-gets-pushback-from-banking-groups-for-bill-to-cap-credit-card-rates-at-18\/","title":{"rendered":"Banking groups oppose Hawley&#8217;s bill to limit credit card rates at 18%."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhawley-gets-pushback-from-banking-groups-for-bill-to-cap-credit-card-rates-at-18%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2041586&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Banking and Finance\u200d Groups Oppose Legislation to Cap Credit Card Interest\u2063 Rates<\/h2>\n<p>Several \u2064banking and finance\u200b groups have come out against\u200b a\u200b bill introduced by Sen. Josh Hawley \u200b(R-MO) that aims to cap credit card\u2064 interest\u200b rates at 18%. The\u2064 Consumer Bankers Association, the Bank\u2064 Policy Institute, \u200dand \u200cthe National Association of Federally-Insured Credit Unions \u200bhave expressed their opposition in a letter to Hawley, \u2062stating that the proposed legislation\u2063 would \u2062have negative consequences for consumers.<\/p>\n<blockquote>\n<h3>Protecting\u2063 Consumers or \u2064Harming \u2063Them?<\/h3>\n<p>The industry groups \u200cargue that\u2062 the bill, \u200bwhich seeks to limit annual\u200d percentage rates to 18%, would severely limit access to credit for everyday consumers and ultimately harm the very people it\u200c aims to protect. They believe that instead of helping consumers, \u200bthe proposed \u200bcap\u2064 would force \u2062them to seek alternative \u200csources of short-term financing, such as pawn shops or unregulated online lenders, which can \u200cbe \u200cmore costly and less regulated.<\/p>\n<\/blockquote>\n<p>The groups highlight the fact that 1 in 9 Missourians already rely on payday loans with exorbitant interest rates exceeding 300%. They\u200b argue that\u200c the bill would push consumers \u2063towards \u200beven more expensive and less regulated\u200d forms of \u2062credit.<\/p>\n<p>In addition to capping credit\u2063 card APRs at 18%, Hawley&#8217;s legislation \u2062would prevent credit card companies from introducing new fees to bypass \u2064the cap and penalize lenders with \u200dAPRs \u200cabove 18%. However, Hawley&#8217;s office did not \u200drespond to requests \u2062for comment on the letter and\u2063 pushback.<\/p>\n<p>This legislation is notable as it goes \u2062against the typical stance \u200cof Republicans,\u200c who have traditionally opposed such \u2064regulations. However, Democrats, including Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY), have previously introduced similar legislation to cap interest rates.<\/p>\n<blockquote>\n<h3>Backlash \u2062and Concerns<\/h3>\n<p>The bill is facing\u2062 opposition from\u2063 groups like the National Taxpayers Union \u200b(NTU). \u200cNTU \u200dPresident Pete Sepp \u2064argues that price caps, including those on consumer credit, create shortages and economic imbalances. He suggests that legislators\u2064 should focus on \u200daddressing the \u2063underlying causes of rising interest rates, such as excessive government spending.<\/p>\n<p>Sepp warns that one consequence of the legislation would be a scarcity \u2062of\u2062 credit cards, as companies may choose to stop \u200boffering credit if they lack the necessary\u2062 resources. He believes that\u200c under an\u200c 18% cap, only\u2062 consumers with excellent credit scores\u200b would have access \u2063to\u2062 credit cards.<\/p>\n<\/blockquote>\n<p>Despite the opposition, Hawley defends the legislation\u200b as a means to assist those burdened by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/brandon-johnson-proposes-tax-hikes-on-high-end-chicago-homes-to-fight-homelessness\/\" title=\"Brandon Johnson suggests increasing taxes on luxury homes in Chicago as a means to combat homelessness.\">high \u2064interest rates<\/a>. He \u200ddescribes an 18% cap as fair and commonsense, offering the working class a \u200dchance to alleviate their financial struggles.<\/p>\n<p>It is\u200d worth\u200b noting that U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hawley-gets-pushback-from-banking-groups-for-bill-to-cap-credit-card-rates-at-18\/\" title=\"Banking groups oppose Hawley's bill to limit credit card rates at 18%.\">consumer credit card debt reached<\/a>\u200d a record high of $1.03 trillion \u200bin \u2062the second quarter of this year, following the economic impact of the pandemic\u2064 and rising \u2063inflation.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> to read more\u2063 from \u200dThe Washington Examiner.<\/strong><\/p>\n<p> <\/p>\n<h2> What alternative measures \u2064do opponents of the legislation propose \u2064to protect consumers and promote financial stability instead of imposing\u2062 a cap on\u2062 interest rates<\/h2>\n<p><span>  More predatory lending\u2062 options, exacerbating their financial struggles instead of alleviating them.<\/p>\n<p>In addition, the banking and finance\u200b groups\u2063 assert \u2063that\u200b capping credit card\u2064 interest\u2063 rates at 18% would have a detrimental impact on the economy as a whole. They\u2064 argue that\u200b the\u200c credit card industry plays a vital role in providing businesses with the\u2062 necessary funds for growth and expansion. By limiting interest\u200b rates, these groups\u2063 \u2064claim that \u2063creditors would be less likely to extend credit to consumers and businesses, hindering economic development and potentially leading to job losses.<\/p>\n<blockquote>\n<h3>Market Forces vs. \u2064Government Intervention<\/h3>\n<p>Opponents of the \u200clegislation also assert\u200b that the \u2063determination of interest rates \u2063for credit cards should remain in the realm\u2064 of market forces and consumer choice, rather than government intervention. They\u200b argue\u200d that competition among <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-credit-card-company-wants-to-counter-woke-banks\/\" title=\"New Credit Card Company Wants To Counter Woke Banks\">credit card issuers<\/a> is essential in driving interest rates down and creating better options for consumers.\u200b By imposing\u200b a cap, proponents of the bill \u2064are interfering with the free market and impeding the ability\u2062 of financial institutions to set interest rates based on risk assessment and market conditions.<\/p>\n<\/blockquote>\n<p>Furthermore, the banking and finance\u200d groups\u2063 emphasize the importance of\u2064 responsible borrowing and financial literacy. They\u200b believe that instead of capping credit card interest rates, \u200cefforts should be focused on educating consumers\u200c about managing \u2063their finances responsibly, including understanding the terms and conditions \u2063of credit card\u200c contracts and making informed decisions about\u2062 borrowing.<\/p>\n<blockquote>\n<h3>An Alternative Approach<\/h3>\n<p>Instead \u2064of imposing a \u2063cap on \u2062interest rates, opponents of the legislation suggest\u200b alternative measures to \u2063protect consumers\u2062 and promote financial stability. These measures include\u2063 strengthening the enforcement of existing consumer protection laws, enhancing transparency\u200b and disclosure requirements for credit card issuers, and encouraging the development of innovative financial products that provide affordable alternatives to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dragging-your-feet-on-marriage-heres-a-robust-case-for-tying-the-knot-amid-a-recession\/\" title=\"Dragging Your Feet On Marriage? Here\u2019s A Robust Case For Tying The Knot Amid A Recession\">high-interest credit cards<\/a>.<\/p>\n<\/blockquote>\n<p>In conclusion, the banking and finance\u200b groups voice their strong opposition to the bill\u200b seeking to cap credit card\u2064 interest rates. They\u200b \u2063argue that \u200csuch legislation would \u2062have \u2063negative consequences for consumers, limit access to credit, and harm the \u2063economy.\u2064 Rather than imposing a \u2063cap, these groups propose alternative approaches that prioritize consumer protection, financial literacy, \u2064and innovation in financial products. The debate over credit card interest rates continues, highlighting the \u2064complex intersection of financial regulation, consumer welfare, and market dynamics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Several banking and finance groups, including the Consumer Bankers Association, Bank Policy Institute, and National Association of Federally-Insured Credit Unions, have expressed their opposition to Sen. Josh Hawley&#8217;s (R-MO) proposed legislation to limit credit card interest rates at 18%. In a letter sent this week, these industry groups conveyed their concerns to Hawley.<\/p>\n","protected":false},"author":1,"featured_media":2041587,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2041586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2041586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2041586"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2041586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2041587"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2041586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2041586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2041586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}