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Report: 10% credit card cap could cut off 64 million Americans, risk recession

A new report from nonprofit Unleash Prosperity warns that the proposed "10 Percent Credit Card Interest Rate Cap Act" could restrict credit access for at least 64 million Americans.
Introduced by Sen. Bernie Sanders, the legislation would impose a five-year ceiling on credit card APRs and penalize lenders exceeding the limit, introducing sweeping price controls.
The analysis estimates that about 30% of credit card accounts could be closed or have reduced limits, resulting in as much as $714 billion in lost gross domestic product.
Reduced credit availability could harm travel-dependent sectors like airlines and hotels, Steve Moore, co-founder of Unleash Prosperity, told The Center Square, while some borrowers might turn to payday loans.
Titled "Interest Rate Caps Would Dramatically Lower Consumer Credit and Risk Recession," the study argues that capping rates prevents lenders from pricing risk, potentially triggering broader economic downturn.

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Report: 10% credit card cap could cut off 64 million Americans, risk recession

(The Center Square) – A proposed federal cap on credit card interest rates could drastically reduce Americans' access to credit and hurt the U.S. economy, a new report warns.

8 hours ago·Chariton, United States

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