House Rules Committee Chairman Louise M. Slaughter is reportedly working on legislation that would cap credit card interest rates at 16 percent.
While 16 percent certainly isn’t low, it’s markedly better than the 30 percent interest rates tied to many credit cards these days.
The bill, which is expected to be introduced after the Thanksgiving holiday, is essentially a response to credit card issuers raising rates to offset the effects of the Credit Cardholders’ Bill of Rights.
Those changes, which include the elimination of arbitrary interest rate increases, two-cycle billing, and negative payment hierarchy, are slated to be implemented in February.
But with every new regulation thrown the credit card issuers’ way comes a fresh strategy to make profit some other way, e.g. higher
Tags: 16 Percent, Card Interest Rates, Interest Rates, Percent
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