A potential alliance between President-elect Donald Trump and Senator Bernie Sanders (I-VT) may be on the horizon, as the two political figures find common ground on the issue of credit card interest rates.
Sanders, a progressive senator, has once again urged the soon-to-be president to collaborate with him and other congressional members to implement a cap on the escalating interest rates of credit cards.
According to Raw Story, Sanders has consistently advocated for the regulation of exorbitant borrowing rates, viewing it as a necessary measure to alleviate the financial burden of consumers grappling with debt. With Trump's imminent return to the White House, Sanders may have found a partner willing to address this issue.
Sanders stated, During the recent campaign Donald Trump proposed a 10% cap on credit card interest rates. Great idea. Lets see if he supports the legislation that I will introduce to do just that. Trump had previously suggested a temporary 10% cap on credit card interest rates during his campaign, allowing consumers to "catch up" on their debt. He asserted that "we have no choice" but to implement such a measure.
However, Matt Schulz, the chief credit analyst at LendingTree, warned of the potential repercussions of such a cap. He stated that it would have a significant impact on bank and credit card companies. Schulz further explained, "It's always important to remember that the banks have lots of buttons to push, lots of levers to pull to regain revenue," indicating that the cap could lead to credit restrictions and reduced rewards.
Despite the shared interest in capping credit card rates, some remain skeptical about Trump's commitment to the cause. Chi Chi Wu, a senior attorney at the National Consumer Law Center, questioned Trump's sincerity regarding a national interest-rate cap. Her doubts were fueled by Elon Musk's recent call to "Delete CFPB," referring to the Consumer Financial Protection Bureau.
Wu expressed her concerns, stating, "I question the sincerity of the Trump team's willingness to protect consumers when one of their key people, Elon Musk, has called for the abolishing of the most important agency protecting consumers' wallets." As the political landscape continues to evolve, it remains to be seen whether this potential alliance will materialize and bring about the desired changes in credit card interest rates.
Login