A poll conducted on behalf of the Consumer Bankers Association (CBA) by Morning Consult revealed Americans’ attitudes on a potential temporary 10 percent cap on credit card interest rates proposed by President Donald Trump.
Among the key results, the survey found that 60 percent of Americans believe that if there is a cap, it is likely that banks will be forced to add new fees and expect a reduction in total credit card approvals. Further, about two-thirds expressed concern that rate caps would hurt those who rely on credit for emergencies and the impact on low-income households.
“The data confirms what hardworking Americans, lawmakers on both sides of the aisle, and subject matter experts already know: a government-imposed cap on credit card interest rates would hurt consumers by drying up access to credit, jeopardizing credit card rewards programs, and threatening the broader economy,” CBA President and CEO Lindsey Johnson said. “The data also highlights the deep concerns Republican and Democratic constituents alike have about the negative consequences this proposal – if enacted – would have on Main Streets across America.”
CBA officials, citing data, said interest rate caps harm borrowers who have high debt by reducing access to credit, which can increase loan defaults and limit access to emergency credit. They added that when lenders cannot appropriately price risk, they cannot justify lending funds, and the amount of overall credit available in the market drops. C
Further, they noted that the consumers impacted most by rate caps are typically low- and middle-income consumers who may have challenging credit histories and are considered higher risk and must be priced appropriately.