(VitalNews.org) – Donald Trump, former president and Republican presidential nominee, has proposed another policy; he recently said that if he’s elected president, he will cap credit card interest rates at about ten percent.
“While working Americans catch up, we’re going to put a temporary cap on credit card interest rates,” Trump said. “We can’t let them make twenty-five percent and thirty percent.”
Trump’s promise comes as many have seen the reports regarding credit card debt for this year. The average credit card debt was over six thousand dollars this year in comparison to three years ago when it was over four thousand dollars on average, according to Federal Reserve data.
The average interest rate on credit cards is over twenty percent and some cards even charge more than thirty-five percent for interest. Ted Rossman, a senior analyst at Bankrate, said, “A ten percent cap would completely upend the credit card market.”
Karoline Leavitt, a campaign spokesperson, has said that the intent of this is to “provide temporary and immediate relief for hardworking Americans including those who are struggling to make ends meet and cannot afford hefty interest payments on top of the skyrocketing costs of mortgages, rent, groceries and gas.”
Under the current federal law, Congress’ approval would be needed to put a federal interest rate cap. There’s not much room for a federal cap or a say in the interest rates, but the authority to set bank interest limits is left up to the states, according to the director of financial services at the Consumer Federation of America, Adam Rust.
Under the National Bank Act, banks are required to abide by the specific interest rates of the individual state in which the lender is located.
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