Author Topic: Planned legislation limiting credit card rates to 15% - What are DDFs thoughts?  (Read 452 times)

Offline CreamofSoup

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Sanders and AOC are planning on introducing the Loan Shark Prevention Act establishing, among other things a 15% cap on credit card interest rates. Marketwatch has an interesting take on this that I hadn't considered, stating that this "could be the death knell for credit-card rewards programs."

I think death knell may be a bit strong and overly dramatic, but I could see significant devaluations happening across the board. I don't play the game nearly as intensively as most here, but I am a hobbyist so this piqued my interest and I'm curious how others may feel about the not-yet-proposed legislation and the effects it could (in theory) have on rewards programs.

Personally, I doubt the bill will pass in it's entirety (too many big bank lobbyists) but I wouldn't be surprised if some portion of it (namely, stricter regulations on loan sharks) did.

Offline ExGingi

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We've been there with government mandating certain mortgage programs, and we know how that ended.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline shaulyaakov

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Sanders and AOC are planning on introducing the Loan Shark Prevention Act establishing, among other things a 15% cap on credit card interest rates. Marketwatch has an interesting take on this that I hadn't considered, stating that this "could be the death knell for credit-card rewards programs."

I think death knell may be a bit strong and overly dramatic, but I could see significant devaluations happening across the board. I don't play the game nearly as intensively as most here, but I am a hobbyist so this piqued my interest and I'm curious how others may feel about the not-yet-proposed legislation and the effects it could (in theory) have on rewards programs.

Personally, I doubt the bill will pass in it's entirety (too many big bank lobbyists) but I wouldn't be surprised if some portion of it (namely, stricter regulations on loan sharks) did.
I think we've all experienced cases where banks basically do whatever they want to customers, so having real rules around that would be huge.

Offline aygart

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We've been there with government mandating certain mortgage programs, and we know how that ended.
Thus selfish banks

I think we've all experienced cases where banks basically do whatever they want to customers, so having real rules around that would be huge.
These rules have nothing to do with those things.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline KSMH

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Most CC companies waive interest payments in many instances anyway.

Offline shaulyaakov

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Thus selfish banks
These rules have nothing to do with those things.
If they're doing it about points, they are probably doing it for fees also.

Offline shaulyaakov

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Most CC companies waive interest payments in many instances anyway.
[citation needed]. Interest is what keeps the lights on

Offline knowitall

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Card issues make their money primarily from interest and the interchange fee. It's the "losers" who pay these high interest fees who are paying for our First class flights and 5 Star hotels.

Offline CreamofSoup

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Most CC companies waive interest payments in many instances anyway.
For a lot of us this may be true - but this is a combination of knowing how to ask and rarely being in a position where any interest would be accrued anyway. Waived interest is far from the norm.

Card issues make their money primarily from interest and the interchange fee. It's the "losers" who pay these high interest fees who are paying for our First class flights and 5 Star hotels.
Do you think that the lower rates (and thus "losers" paying less) will effect the value of points though? We're already/still seeing significant devaluations across a lot of major programs.