In the grand scheme that would be better for most people. CC debit over the longer term can crush financial freedom.
A small difference between the pay day loan places that were under fire from Biden’s Admin. Did you think that was a good idea then? BTW not really in favor of a max cap but 27% interest rates on CC are a bit much.
Assuming an applicable law is passed they have the right. It doesn’t necessarily make it a good idea. I’m kind of confused, you sound like you are against price controls or regulation, but you are ok with trump setting interest price caps which is a control on the price of money. The government can pass any law that is constitutional that allows them to regulate commerce, subject to various existing commerce laws. Regulation in itself isn’t considered socialist. All countries regardless of economic system have regulations.
The high interest rates are really to cover high default rates. Any cap on rates will likely cause issuers to tighten requirements for credit worthiness and make cards very difficult to get. Long run that may be healthier but it would be an economic shock in the short term.
I don’t think that CC companies apply that logic equally. My FICO score is about 800 never had a default, or charge off or foreclosure. I don’t carry a balance unless it’s a no interest for X months (Home depot) yet I still have a 22% rate on that card. Many cards offer lower introductory rates but after 6-9 months they jump to 16% or higher. It was that way when the FFR was under 2% also. FTR I agree with the sentiment “then don’t use a CC”. It seems like however most all cards have set rates much higher while default rates aren’t any higher than historical normals.
Credit optimizes value. People value items differently to themselves and some people may be willing to pay more overall to have use of something now and forgo something else. Credit is a huge driver of an optimized economy. Anything can be abused but credit defaults continue to hover near all time lows.
Yeah, let's look at a few of those "small differences:" 1. The payday lending industry was charging over 300% interest, not 27%, which you declared a bit much. I wonder what you think of over 300% interest then? Apparently, it is a small difference. 2. The payday loan industry was trapping people in a cycle of ever escalating payday loans, where larger and larger loans were meant to pay back the previous interest. 3. The Obama era rules required a check on ability to pay, not a price control. So do you support price controls on credit cards, payday lenders, or both?
Yep I noted that above, thus the argument that CC companies charging 22-28% are justified fall flat for me. I also agree that people have full choice to not use them but when does it become “predatory lending”? low introductory rates suck people in and then they get slammed. Same with the NO/NO rates that revert to high rates if the initial transfer or purchase is fully paid off before the grace period ends. Many here defended going after banks for ARMs when the “helpless” home buyers got slammed in the 2006-2008 housing meltdown. Too me it’s pretty damn similar.
I don’t know that I’m really supporting price controls. I took some umbrage at the notion the CC charged such high rates because of defaults and we both agree defaults are at near low rates seems more like they are colluding to charge more than they could. Personally I think pay day lenders are just “legal loan sharks” that tend to prey upon the slow witted and the poor. Buyer beware comes to mind however not all buyers have the brains to beware. In a true free market there would be less need for price controls as there would be cheaper lenders. Not sure that price controls are the answer and I think that some states limit CC in what they can charge above the FFR, need to check that.
credit scores aren’t perfect and people’s status change. Credit cards are unsecured debt. The rate of recovery is very low. If for what ever reason you are not paying the full balance then that means there may be a problem.
https://www.wsj.com/opinion/donald-...new-york-rally-4f0dd47b?mod=opinion_lead_pos3 Mr. Trump’s promised “temporary” 10% cap is lower than the rate that America’s two leading socialists proposed in 2019. A bill from Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez aimed to limit rates on consumer debt to 15%. “Modern-day loan sharks are no longer lurking on street corners breaking kneecaps,” Mr. Sanders said. “They wear three-piece suits and work on Wall Street.” Mr. Trump has criticized Kamala Harris for proposing price controls on groceries. “After causing catastrophic inflation,” he told a Pennsylvania rally, “comrade Kamala announced that she wants to institute socialist price controls. You saw that. Never worked before. Never ever worked. He’s right, yet Mr. Trump is doing the same on credit cards. It’s bad enough to have a Democratic Party that ignores economics. What’s the point of a Republican Party that follows suit?
All the "chicom socialism bad" bros gonna chime in now that Bernie Sanders is promoting this idea with Trump? Sen. Sanders says he is looking forward to Trump 'fulfilling his promise' on credit card interest rates
Yea. I saw that. It will be interesting to watch the democrats push Trumps ideas and the republicans run interference.
Between the “2000 ingredients banned in Europe” and the proposed cap on interest rates, even the typical democrat is probably more “woah slow down, that’s too commie for me”. These are things even a bunch of democrats will drop off supporting because it’s too far left. There are obvious consequences to capping interest at 10%, it’s not at all like the predatory lending of payday loans. But you see RFK posing with his Big Mac and bottle of coke, and you realize it’s all just bs. They aren’t serious about any of this stuff anyway.
Lol... "price" control... or theft/fleecing control? I don't like it either way, because it's antitheical to free martekt freedom. However... maybe there is collusion involved with these card companies, price fixing by these card companies is what should be looked into.
Yes!! Right on cue; the free market capitalism of these companies is very very bad because (I think) Donald Trump said so! Also, "I'm usually a small government person, but if Trump said this, then the government must strongly and hugely intervene!" I only hope that it takes them a good long while to figure out that Donald Trump doesn't care a single bit about either them, or any of these policies. That way they'll parrot the chicom talking points for more time.
I guess you've never heard of REGULATIONS, have you? And the fact that our country actually pays farmers NOT TO FARM... Lol... Liberals.
