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AOC and Sanders call for capping credit card interest rates at 15%
Washington Examiner ^ | 09-05-19 | Colin Wilhelm

Posted on 05/09/2019 11:05:26 AM PDT by Steve1999

Bernie Sanders and Alexandria Ocasio-Cortez will introduce legislation to create a national cap on interest rates for credit cards. The Sanders-Ocasio-Cortez legislation would limit credit card annual percentage rates to 15%. Current credit card annual percentage interest rates typically range from the mid-teens to high 20s, depending on a person’s credit score. “Every major religion on Earth ... has condemned usury because it is really disgusting,” said Sanders, a Vermont independent senator who is also a leading candidate in the Democratic presidential primary. “What Alexandria and I are proposing in this legislation is not complicated ... Bringing back the concept of usury laws, where banks cannot try to get blood out of a stone.”

(Excerpt) Read more at washingtonexaminer.com ...


TOPICS: Business/Economy; Local News; Military/Veterans; Miscellaneous
KEYWORDS: aoc; apr; berniesanders; credit; interest; interestrates; newyork; ocasiocortez; sanders; usury; vermont
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To: rightwingintelligentsia
Arthur Laffer, an economist who supported Gerald Ford's tax cuts in the mid-70s, said that the tax rate to maximize the most revenue into the federal coffers, is 17%.

Rates about that, lowers revenues. Too onerous. Taxpayers avoid paying or use loopholes.

Rates below that, diminishes revenues because they don't bring in enough taxes.

His Laffer Curve showed that the prime tax rate was 17% across the board.

61 posted on 05/09/2019 12:02:33 PM PDT by HotHunt (Been there. Done that.)
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To: Steve1999
How 'bout capping the TAX RATE at 15% ?!

ML/NJ

62 posted on 05/09/2019 12:03:50 PM PDT by ml/nj
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To: Steve1999

Control the price of everything, cuz stuff is like, too expensive, ya know?


63 posted on 05/09/2019 12:04:12 PM PDT by bigbob (Trust Trump. Trust the Plan.)
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To: Vermont Lt
At the start of the financial crisis AMEX stopped their Business Line of Credit. Not just for me, but for everyone.

There must have been some real dumb bunnies at AMEX. In 2011, I got an offer to piggy back a new Amex card to my AA rewards MC. I got 20K free miles with basically no strings attached and no yearly fees as long as I pay the yearly $50 MC fee.

64 posted on 05/09/2019 12:16:29 PM PDT by EVO X
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To: sockmonkey

“Sometimes there are expenses, medical, transportation, etc, that leave people little choice. They are called unforeseen emergencies.”

That’s what short-term savings are used for — which is different than long term savings of 10-20%. Little choice? We all have choices on how much to spend and save. Unfortunately some people refuse to save and live within their means.


65 posted on 05/09/2019 12:20:36 PM PDT by plain talk
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To: VietVet876
"That’s a great idea. Of course the credit card companies would never think of tightening up their qualifications and lending limits in order to remain profitable."

Of course they will. And AOC and Bernie get to call them "racist", again. See how it works?

66 posted on 05/09/2019 12:22:02 PM PDT by cincinnati65
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To: Steve1999

while 15% certainly looks like plenty of interest,
the simple fact is that banks wouldn’t be able to extend the credit to less people (that is, more folks wouldn’t be able to get credit cards)

I suspect that a lot of them would be Bernie/AOC voters, too?


67 posted on 05/09/2019 12:27:45 PM PDT by faithhopecharity ( “Politicians are not born; they are excreted.” Marcus Tullius Cicero (106 to 43 BCE))
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To: faithhopecharity

The banks’ choice would be between less profit and no profit.

At the end of the day they’d grumble, but acquiesce.


68 posted on 05/09/2019 12:32:09 PM PDT by Buckeye McFrog
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To: Steve1999

Noooo.

The people paying 28% are funding my travel points.


69 posted on 05/09/2019 12:39:53 PM PDT by NY.SS-Bar9 (Those that vote for a living outnumber those that work for one.)
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To: Steve1999; All
Uninformed justification of fed power to regulate banking under Necessary and Proper Clause (1.8.18) aside, the states have never expressly constitutional delegated to the feds the express constitutional authority to regulate INTRAstate banking.

More specifically, some delegates to the Constitutional Convention evidently had friends who owned banks and knew that their banking friends didn't want federal interference in how they ran their banks. So delegates decided that giving feds power to regulate banking was an unjustifiable means to exercising any of Congress’s peacetime Article I, Section 8-limited powers.

“A proposition was made to them to authorize Congress to open canals, and an amendatory one to empower them to incorporate. But the whole was rejected, and one of the reasons for rejection urged in debate was, that then they would have a power to erect a bank, which would render the great cities, where there were prejudices and jealousies on the subject, adverse to the reception of the Constitution [emphasis added].” —Jefferson’s Opinion on the Constitutionality of a National Bank : 1791.

President James Madison later reluctantly signed bill to establish a temporary national bank. But it was arguably a Section 8 war-related, debt clauses-justified bank to help put country back together after War of 1812 (War Is Hell!).

Establishment

Federal Reserve unconstitutional too imo. The states probably would have given popular President Wilson a banking amendment to the Constitution if he had asked for one. I wouldn't be making this post if there was an express banking power clause in Section 8.

But Civil War southerner Wilson led Congress to establish feds without required constitutional consent of states imo.

”From the accepted doctrine that the United States is a government of delegated powers, it follows that those not expressly granted, or reasonably to be implied from such as are conferred, are reserved to the states, or to the people. To forestall any suggestion to the contrary, the Tenth Amendment was adopted. The same proposition, otherwise stated, is that powers not granted are prohibited [emphasis added].” —United States v. Butler, 1936.

Corrections, insights welcome.

70 posted on 05/09/2019 12:45:38 PM PDT by Amendment10
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To: Steve1999

Why not 10%?


71 posted on 05/09/2019 12:46:41 PM PDT by Brilliant
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To: cuban leaf

What they don’t get is that if you cap it, it means those high risk people simply won’t qualify for cards.


Yep.

It’s not a reduction of interest rates, as much as it is a ban on people who have high risk getting offered any credit at all.


72 posted on 05/09/2019 12:49:28 PM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: cuban leaf

As unsecured debt, the risk of default is exceptionally high.

High rates are the result.

Nobody makes you use a credit card, it’s a short term loan, and a privilege, not a right. The banks charge the same rates for other unsecured loans. What’s the difference?


73 posted on 05/09/2019 12:52:15 PM PDT by Ouderkirk (Life is about ass, you're either covering, hauling, laughing, kicking, kissing, or behaving like one)
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To: Steve1999
anders and AOC are being really stupid in this assertion, for it is only unlimited usury rates capped by assassination for non-payment that can keep the nation dissolving in unpaid credit. This pair of intellectual Bobbsey twins want our nation to fail through unsatisfied greed of the borrower and outstanding unrecoverable loans ofte creditor.

We need to bring in the Mafaia to show us how to control the I-want-gimme complex.

74 posted on 05/09/2019 12:52:17 PM PDT by imardmd1 (Fiat Lux)
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To: Buckeye McFrog

Don’t laugh this one off. If you took a poll I bet this is going to garner wide majority support.


Absolutely, and by the same people who don’t understand the effects of a legal minimum wage.


75 posted on 05/09/2019 12:54:39 PM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: Buckeye McFrog

They’ll acquiesce but stop issuing credit cards to those people who are the higher risks of nonpayment default etc. This is mown or knowable to anybody in congress with an IQ above single digits. Answer : the sponsors do not give a damn about credit availability — they’ve got theirs and the bill will give them a few more PC political headlines


76 posted on 05/09/2019 1:07:24 PM PDT by faithhopecharity ( “Politicians are not born; they are excreted.” Marcus Tullius Cicero (106 to 43 BCE))
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To: Steve1999

Ms. Economics Major with no Cortex ought to know that when you force a lower price on a credit product, less credit is extended. This is EXACTLY the same as mandating a higher minimum wage - the effect will be to harm those who are already in the most vulnerable position.

Bernie is just a senile, old Socialist, you expect this kind of crap coming out of his pie hole.


77 posted on 05/09/2019 1:07:41 PM PDT by Ancesthntr ("The right to buy weapons is the right to be free." A. E. van Vogt, The Weapons Shops of Isher)
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To: Steve1999

Perhaps this is a young crowd but there were caps on credit cards during (and probably before) the Jimmy Carter years. I recall the caps were on the order of 12% while money market funds were paying 17%. Free money for all.


78 posted on 05/09/2019 1:35:36 PM PDT by PhillyPhreeper
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To: Steve1999

What’s a credit card interest rate? Never met one.


79 posted on 05/09/2019 1:42:12 PM PDT by moovova
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To: PhillyPhreeper

“...while money market funds were paying 17%...”

I remember that. Having money in a money market was like having a well-paying part-time job.

I miss those days.


80 posted on 05/09/2019 1:44:54 PM PDT by moovova
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