Trump proposes PRICE CONTROLS now w/cap for credit cards

[Couchpotato]

See my last post. Credit cards are generally excluded or have super high rates well over loan rates.

The point is that we (the US Government) are already capping interest rates, and in many states specifically credit card rates. The Government ostensibly sets rates through the fed to begin with, it's not the "market". Capping interest rates won't kill the CC industry it will just preclude certain segments of the populace (people with bad credit and thus are high risk) from getting CC's unless it's your contention that the CC company's business model is based on being able to charge ridiculously high interest rates to people least able to pay them.

 

[Fort Fun Indiana]

Oh goody, what Trump wants to do is socialism

That's not socialism.

That's just intervention

 

[Fort Fun Indiana]

The Government ostensibly sets rates through the fed to begin with, it's not the "market".

This is utter nonsense. Just complete gibberish.

Credit card companies set their rates using risk based pricing. Prime lending rate is an industry convention, not a law or rule. While a movement by the fed of 1% can result in a 1% reduction in rates, obviously it is foolish to say the fed "sets rates" on a credit card that ranges from 10 to 32%, depending on creditworthiness, or auto loans that range from 6% to 25%, at the same lender.

 

[1srelluc]

View attachment 1014774

Trump getting to 270 baby!

That is all that matters.

 

[Couchpotato]

This is utter nonsense. Just complete gibberish.

Credit card companies set their rates using risk based pricing. Prime lending rate is an industry convention, not a law or rule. While a movement by the fed of 1% can result in a 1% reduction in rates, obviously it is foolish to say the fed "sets rates" on a credit card that ranges from 10 to 32%, depending on creditworthiness, or auto loans that range from 6% to 25%, at the same lender.

WTF? The fed rate is the main driver for all (loans, savings, CD's etc etc) interest rates you twit.

 

[noonereal]

Clear as day. The dude is just rambling but in his ramble Trump basically proposes what Harris was accused of proposing. She didn’t.

She opposes price gouging in emergencies and illegal collusion on pricing.

Capping credit card interest @ 10% is straight up price control. Would bankrupt companies too.

Sure, Donald, let’s cap interest rates - Kevin Drum

Sigh. It just doesn't matter what he says, does it? Most likely nobody will bother reporting this. Banks won't bother protesting it. Wonky bloggers like me won't bother explaining why Trump can't do it. Conservatives will mostly ignore the fact that this really is socialism, far worse than Kamala Harris's trivial price gouging proposal. In fact, just the opposite: His enablers will suddenly produce a spate of explanations for why it's a brilliant, far-reaching, and conservative proposal.

Stuff like this is a product of intersectionality: Trump is both mentally declining and willing to say any weird thing that pops into his fevered brain. Everyone knows it, so nobody takes anything he says seriously. He's treated like a five-year-old running for president.

Maybe you have no heard, Trump is a shameless buffoon.

 

[Couchpotato]

This is utter nonsense. Just complete gibberish.

Credit card companies set their rates using risk based pricing. Prime lending rate is an industry convention, not a law or rule. While a movement by the fed of 1% can result in a 1% reduction in rates, obviously it is foolish to say the fed "sets rates" on a credit card that ranges from 10 to 32%, depending on creditworthiness, or auto loans that range from 6% to 25%, at the same lender.

What would happen to CC interest rates if the Fed raised prime interest rates 4 points tmw?

 

[BackAgain]

In some states, like NY, the highest legal interest rate is 25%. Beyond that, it becomes the crime known as “usury.”

But credit cards are not covered.

I am not sure why they get the benefit of being excluded.

 

[Couchpotato]

In some states, like NY, the highest legal interest rate is 25%. Beyond that, it becomes the crime known as “usury.”

But credit cards are not covered.

I am not sure why they get the benefit of being excluded.

Really you dont know?

 

[BackAgain]

Really you dont know?

I have my suspicions.

But I never researched the history of such a law or its exclusions.

 

[Fort Fun Indiana]

In some states, like NY, the highest legal interest rate is 25%. Beyond that, it becomes the crime known as “usury.”

But credit cards are not covered.

I am not sure why they get the benefit of being excluded.

Fair. But it's because they are unsecured revolving lines.

So they persist through changing rate environments. Your auto loan written in todays rate environment should be paid down by half in 3 years.

Whereas you can pull out your credit card in 3 years and max it out in the rate environment 3 years from now.

Oh, and they have a VERY strong lobby.

 

[Foxfyre]

Clear as day. The dude is just rambling but in his ramble Trump basically proposes what Harris was accused of proposing. She didn’t.

She opposes price gouging in emergencies and illegal collusion on pricing.

Capping credit card interest @ 10% is straight up price control. Would bankrupt companies too.

Sure, Donald, let’s cap interest rates - Kevin Drum

Sigh. It just doesn't matter what he says, does it? Most likely nobody will bother reporting this. Banks won't bother protesting it. Wonky bloggers like me won't bother explaining why Trump can't do it. Conservatives will mostly ignore the fact that this really is socialism, far worse than Kamala Harris's trivial price gouging proposal. In fact, just the opposite: His enablers will suddenly produce a spate of explanations for why it's a brilliant, far-reaching, and conservative proposal.

Stuff like this is a product of intersectionality: Trump is both mentally declining and willing to say any weird thing that pops into his fevered brain. Everyone knows it, so nobody takes anything he says seriously. He's treated like a five-year-old running for president.

Temporarily capping credit card interest would require legislation and many in Congress are open to the idea. It would be TEMPORARY, at most a few months, just to give those swamped bycredit card debt due to Biden's inflation a bit of breathing room to reorganize and pay some of that down. It is NOT the same thing as price controls.

Bankers aren't even concerned about the idea because they know of Trump's bank friendly policies in the past and that loss of interest they would mostly or totally make up with relaxed unnecessary regulation and restrictions in other areas.

https://www.marketwatch.com/story/trump-threatens-credit-card-interest-caps-but-smart-money-still-views-him-as-boon-for-banks-7658172f

 

[Couchpotato]

I have my suspicions.

But I never researched the history of such a law or its exclusions.

I'd be willing to bet a ton of money it has something to do with the CC lobby......

 

[struth]

I would be careful with your debit card.

If someone makes a fraudulent transaction with your credit card number, the credit card company eats it and you pay nothing.

Another reason they charge high interest. The eat billions and billions of fraudulent debt every year.

If someone steals your debt card number and uses it to buy something. YOU eat the cost. Your bank does not. You're shit out of luck in most cases.

This is correct but if you pay your credit card off every month interest rates aren’t an issue

 

[Fort Fun Indiana]

Bankers aren't even concerned about the idea

Banks are going to convulse at the idea. Unless Trump pays them back by eliminating some more very important regulations.

 

[Oddball]

Temporarily capping credit card interest would require legislation and many in Congress are open to the idea. It would be TEMPORARY, at most a few months, just to give those swamped bycredit card debt due to Biden's inflation a bit of breathing room to reorganize and pay some of that down. It is NOT the same thing as price controls.

Bankers aren't even concerned about the idea because they know of Trump's bank friendly policies in the past and that loss of interest they would mostly or totally make up with relaxed unnecessary regulation and restrictions in other areas.

https://www.marketwatch.com/story/trump-threatens-credit-card-interest-caps-but-smart-money-still-views-him-as-boon-for-banks-7658172f

Right.

But just like the TRUMP WILL SIGN AN ABORTION BAN! bedwetting, the narrative involves sucking in stupid, nose picking meat suits, who have no idea how gubmint works.

 

[Couchpotato]

I have my suspicions.

But I never researched the history of such a law or its exclusions.

The current President has a very well documented relationship with the CC companies from his time in the Senate.

 

[Fort Fun Indiana]

The current President has a very well documented relationship with the CC companies from his time in the Senate.

Absolutely. He was very friendly to them.

 

[struth]

The point is that we (the US Government) are already capping interest rates, and in many states specifically credit card rates. The Government ostensibly sets rates through the fed to begin with, it's not the "market". Capping interest rates won't kill the CC industry it will just preclude certain segments of the populace (people with bad credit and thus are high risk) from getting CC's unless it's your contention that the CC company's business model is based on being able to charge ridiculously high interest rates to people least able to pay them.

Every state in the union has usury laws capping interest rates Cc can charge.

Usury laws date back to Roman times

They aren’t price controls

 

[excalibur]

Did you listen to him?.... or just see the title and posted it?....
He said place a cap on interest rates for credit cards which are four and five times the nations interest rate...
Banks have been ripping borrowers off for years... this is a good thing and its nothing like what Kamala proposed....

Yep. We used to call what they do 'usury'. But Biden has played a big role in this as so many credit cards are based in Delaware.

There is no reason for their outrageous interest rates to be permitted and make no mistake OP, it is the government which allows such usurious rates.

Hey, OP, that isn't price controls. FFS.