In a rare bipartisan move, lawmakers from opposite sides of the aisle have introduced a bill aimed at significantly reducing credit card interest rates. Representative Alexandria Ocasio-Cortez and Republican Representative Anna Paulina Luna are leading the effort to cap credit card interest rates at 10%, arguing that excessive interest charges are burdening American consumers.
The proposed legislation seeks to provide financial relief to millions of credit card holders who are facing high-interest debt, particularly as inflation and economic uncertainty continue to strain household budgets. Supporters of the measure argue that reducing interest rates would prevent predatory lending practices and offer consumers more manageable repayment options.
Critics, however, warn that such a cap could lead to unintended consequences, including reduced credit availability for lower-income borrowers and potential shifts in the lending market. The bill is expected to face significant debate in Congress, where banking and financial industry stakeholders are likely to push back against any restrictions on lending rates.
Despite potential hurdles, the bipartisan nature of the proposal signals growing concern over consumer debt and affordability. Lawmakers behind the initiative emphasize that tackling high-interest rates is a crucial step in addressing financial inequality and ensuring fair lending practices.