In a bold move to safeguard consumers, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez have introduced the 10 Percent Credit Card Interest Rate Cap Act. This legislation, unveiled in early 2025, aims to impose a cap on credit card annual percentage rates (APRs) at 10%, a significant reduction from the current rates that often exceed 20%. According to the results published in the material, this change could have a profound impact on millions of Americans struggling with debt.
Overview of the Proposed Act
The proposed act is designed to protect consumers from the burden of high-interest debt, which can lead to financial instability and hardship. By capping interest rates, the lawmakers hope to create a more equitable lending environment, allowing individuals to manage their credit more effectively without the fear of spiraling debt.
Potential Impact on the Credit Card Industry
If passed, this legislation could reshape the credit card industry, compelling lenders to adjust their pricing strategies and potentially leading to a more competitive market. Advocates argue that such a cap is necessary to prevent predatory lending practices, while critics warn it may limit credit access for higher-risk borrowers. The debate surrounding this act is expected to intensify as it moves through Congress.
The US Senate Agriculture Committee has delayed the markup of the crypto market structure bill, which is crucial for future cryptocurrency regulation. This decision comes as lawmakers, including Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez, push for consumer protection measures in other areas, such as credit card interest rates. For more details, see read more.
