Rep. Lawler Opposes Proposed Credit Card Interest Rate Cap
New York Representative Mike Lawler has voiced opposition to a bipartisan initiative that seeks to limit credit card interest rates to 10%.
Last week, former President Donald Trump introduced this proposal, which has gained surprising support from notable figures such as Senators Elizabeth Warren and Bernie Sanders.
On January 12, Warren revealed, “The president called me. I told him that Congress can pass legislation to cap credit card rates if he will actually fight for it.”
However, on the same day, Lawler expressed to Punchbowl News his lack of support for the measure, indicating that his fellow Republicans in the House would likely also oppose it.
“The idea of just putting in some type of cap, from a traditional finance standpoint, I don’t think very many of us would support,” Lawler stated.
According to data from Bankrate, almost half of American credit card users carry an outstanding balance, with 20% of these individuals doubting their ability to settle their debts within their lifetime.
Unplanned expenses like medical emergencies and car repairs are major drivers of credit card debt. The recent surge in living costs, including food and utilities, has further amplified this issue.
Many consumers attribute their growing debt to high interest rates, which average over 19%, with some reaching up to 30%.
Bankrate analyst Todd Rossman commented, “For millions of American households, credit card debt represents their highest-cost debt by a wide margin.”
Financial institutions and credit card companies typically oppose establishing interest rate caps, as these payments are a crucial revenue source. For instance, Capital One reported $11 billion in earnings from credit card interest payments in 2023 alone.
Between 2023 and 2024, Lawler received approximately $110,000 in campaign contributions from major banks and their employees, alongside nearly $20,000 from Visa, the largest credit card payment network in the U.S.
Lawler is preparing for a reelection campaign this year.
The post GOP Rep. Mike Lawler rejects 10% cap on credit card interest rates appeared first on American Journal News.
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