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Article: Do credit cards need interest rate caps? (includes related information on Senate's attempt to cap interest rates and situation in Arkansas) (Column)
- Article from:
- Consumers' Research Magazine
- Article date:
- February 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Consumers' Research, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Following President Bush's call this past fall for lower credit card interest rates, the Senate voted for an amendment that would cap these rates several percentage points, on average, below what is currently charged.
After the vote, the stock market plunged, panic selling rocked the $60 billion credit card securities market, and banks threatened to pull cards from as many as half of current cardholders if the amendment became law.
The Senate dropped the amendment, but calls to control these rates continue.
Are credit card interest rate caps in order? As we explain in the following article, any moves to do so would likely backfire--raising ...