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Information released by the U.S. Bureau of Labor Statistics and the U.S. Department of Commerce suggests a mixed bag for American consumers.
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Many people are in the market for prepaid cards because these cards are great for establishing good credit habits, are accepted everywhere major credit cards are, and are available for those who may
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PerkStreet Financial is generally known for offering very competitive rewards programs, and they continue this trend with their PerkStreet Financial℠ Debit MasterCard®. This debit card offers up to
Representatives Intro Bill to Curb Credit Card Interest Rates
On February 16th, Congresswoman Louise M. Slaughter (D-NY), Chairwoman of the House Committee on Rules, and Rep. John Tierney (D-MA) introduced legislation that would amend the 2009 Credit CARD Act by capping Credit Card Interest Rates at 16%. The lawmakers argue that, in these difficult economic times, consumers are being exploited by credit card companies allowed to assign sky-high interest rates.
Currently, there is no established maximum on the APR credit issuers can assign to their customers. While the average APR is relatively high at 14.91%, variable rate cards commonly adjust a lot higher--up to 36%--for customers who miss a payment or have some other credit misstep. The legislation proposed plans to curb interest rates (and accompanying credit card fees) that threaten those with unstable credit and make it almost impossible for those card holders to pay back what they owe.
Critics of the bill are already objecting, with some claiming that this could crush the credit card industry. Others note that if credit card companies can no longer make profits through charging high interest rates and fees for customers who are considered high-risk borrowers, then only consumers with top-tier Credit Scores will be extended credit offers. And several commenters online have noted that many of the perks credit card companies have started rolling out this year to lure good boorrowers back may be in jeopardy if this bill picks up steam.
What are your thoughts on this bill? Will it help consumers in the short-term at the expense of long-term borrowing? And do you think it will pass, or will the credit card lobbies shoot this legislation down before it exits committee?
