10% cap on credit cards, which are essentially unsecured (no collateral) loans?
I think that what would happen with that is that nobody with a credit rating lower than about 700 would be able to get a card because the cost of the risk would be higher than the earnings from interest.
Or you’d have to put up collateral to get a card - second mortgage, bank account, vehicle, 1955 Fender Strat guitar - something of value that the lender can seize if you fail to pay. I sure wouldn’t give credit to anyone that I didn’t trust.
10% probly isn’t going to happen. But remember we used to have a Usury law that capped interest rates at 18%. But when rates started inching up in the 80’s the dims couldn’t stand it and abolished it. I had a Sears card at the time and it took them less than a week to bump the card rate to 25% and later to 29%. Fortunately I didn’t owe them any money-—just needed the card to mail order tools and parts.
That was when house rates went to 15 plus %. The big spending from VeetNam cost us at least 20 years of stoopidness. The penalty rate on most of my cards is hanging around 29% but most still want to loan me money way cheaper than that. They keep tempting me to do something creative like, maybe, buy a motorcycle. I have to stay away from dealers——