Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates

May 14, 2009

(ChattahBox)—The Senate overwhelmingly rejected a measure initiated by Independent Senator Bernie Sanders of Vermont, to cap credit card interest rates at 15 percent in the new credit card bill.

With consumers complaining of the outrageously high interest rates charged by credit card companies, some approaching 41 percent, the Senate couldn’t overcome the intense lobbying by the banking industry that claimed a cap of interest rates would cause financial markets to drop.

The cap on interest rates measure only garnered 33 votes, with a bipartisan group of 60 opposing a limit on credit card interest rates. Many Senators believed an interest rate cap would make it impossible to pass the much needed credit card reform bill.

Senator Sanders was disappointed in the failure of his measure, believing the credit card bill needs an interest rate cap, to truly offer reform and protection to consumers gauged by high interest rates.

Sanders noted that nearly one third of all credit card holders are paying interest rates above 20 percent and some, up to a startlingly high rate of 41 percent.

Sander says credit card companies charging interest rates exceeding 30 percent “are engaged in loan-sharking.” Sanders noted that credit unions are limited to 15 percent and so should credit card companies.

The fight against interest rate gauging by the credit card companies may not be over.

Democratic Senator Dodd of Connecticut, chairman of the banking committee, proposed seeking help from the Federal Reserve to advise Congress on ways to lower the out of control credit card interest rates, which pose a crushing financial burden on many consumers.

Source


Comments

6 Responses to “Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates”

  1. Card Credit Rate - President To Meet With Credit Card Holders On Alleged Mistreatment - KAKE TV « Card Credit Rate on May 14th, 2009 5:34 pm

    […] Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates – Chattahbox.com(ChattahBox)—The Senate overwhelmingly rejected a measure initiated by Independent Senator Bernie Sanders of Vermont, to cap credit card interest rates at 15 percent in the new credit card bill. With consumers complaining of the outrageously high […]

  2. » Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates … » Credit Loan Calculator on May 14th, 2009 7:06 pm

    […] news by unknown « College loans, credit card debt, and the conspiracy to keep you […]

  3. Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates … on May 14th, 2009 8:12 pm

    […] post: Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates … Posted in […]

  4. Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates … « Bank CD on May 14th, 2009 9:11 pm

    […] Read more: Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates … […]

  5. Paying On Time - Credit Cards » Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates … on May 14th, 2009 10:44 pm

    […] (ChattahBox)—The Senate overwhelmingly rejected a measure initiated by Independent Senator Bernie Sanders of Vermont, to cap credit card interest rates at 15. Go to Source […]

  6. Senate Rejects Cap on “Loan-Sharking” Credit-Card Interest Rates … on May 15th, 2009 7:24 am

    […] posted­ here: Sena­t­e R­eject­s Ca­p o­n “Lo­a­n-Sha­r­k&#173… Share and […]

Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of ChattahBox.com - Comments are the opinions of the individuals leaving them, and not of ChattahBox.com or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.