Senate Rejects a 15% Ceiling on Credit Card Interest Rates

[thekid]

Fair enough

the way to discourage it could be debated.

My suggested posted earlier would include reduce ability of these companies which I do not do business with to check my credit report (require me to authorize all access to it).

Meaning no one would know my credit activity until I asked them to check it- this would reduce the ability of cc companies to market themselves by offering free cards for example.

Or restrict how often the companies can change rates- require 90 day written notice that their rates will change (whether because of a late payment, markets, or other reasons)

But do not directly control who can get credit, or what interest rates they charge, or why rates change, just indirectly control same behavior with other minor restrictions which protect people.

I agree that government has no business setting credit card interest rates. What I would like to see is legislation forcing linkage between the rate and the individual borrowing risk. As long as that premise is respected, the market and competition can set the rates and the risk of overextending credit should ne kept in check.

[wincrasher]

It's wholly appropriate that the government can define usury. They are not getting involved in the inner workings of businesses - they are setting the groundrules for a marketplace - clearly the perveiw of government.

Besides, they're loaning out money to these banks at nearly 0%. And they can't make money at 15%? Really?

Maybe if consumer credit were pulled back a bit, that wouldn't be such a terrible thing for those people who are paying 25%+. You really don't have a problem with getting perks off the backs of people paying these rates?

Currently the only difference between what the big banks are doing and the mafia has to do with bullets and broken limbs.