Sen. Bernie Sanders, Rep. Alexandria Ocasio-Cortez Propose 15% Cap on Credit Card Interest



Democratic presidential candidate Bernie Sanders and Representative Alexandria Ocasio-Cortez accused banks of acting as “modern-day loan sharks” and called on Congress to enact a federal limit of 15% on credit card interest rates.

The two self-identified democratic-socialists are set to propose legislation on Thursday capping rates on credit card and other consumer loans and letting post offices offer low-cost basic financial services, such as loans and checking and savings accounts.

An outline of the plan released ahead of their formal announcement sharply criticized banks for charging on average more than 17% interest on credit card balances while they are able to borrow money at less than 2.5%.

“Today’s loan sharks wear expensive suits and work on Wall Street, where they make hundreds of millions of dollars in total compensation by charging sky-high fees and usurious interest rates,” the statement said.

With Republicans in control of the Senate, the proposal has little chance of becoming law any time soon.

Americans have more than $1 trillion in credit card debt. According to figures from CreditCards.com cited by Sanders and Ocasio-Cortez, the national average interest rate on credit cards is 17.73% and many people pay much higher interest. The interest rate limit they propose also would apply to payday loans.

They said it would match the interest rate cap for credit unions.

The proposal also would let more than 30,000 post offices provide banking services for low-income Americans who currently don’t have ready access to banks.

Sanders, a Vermont Senator, is running for president as a progressive, in contrast to former Vice President Joe Biden, the current front-runner in the race, who is offering a more centrist alternative to a largely left-leaning field of 21 Democratic contenders. He’s also competing with Senator Elizabeth Warren of Massachusetts, who’s built her reputation as a harsh critic of Wall Street and as a champion for consumers.

Sanders’s new proposal highlights the way he will make taking on Wall Street and corporations a recurring theme in the 2020 contest. By teaming up with Ocasio-Cortez, a first-term representative from New York, Sanders is drawing on a high-profile fellow progressive with strong appeal to younger voters.

Sanders has been rolling out a series of proposals in recent weeks, including a “Medicare for All” proposal whose co-sponsors include four of his presidential primary rivals: Warren, Kamala Harris, Cory Booker and Kirsten Gillibrand. He also has proposed a broad overhaul of policies affecting small-town family farmers and the agriculture industry, which would include a moratorium on new agribusiness mergers.

Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm

TICTOC ON SOCIAL:
Follow TicToc on Twitter: https://twitter.com/tictoc
Like TicToc on Facebook: https://www.facebook.com/tictoc
Follow TicToc on Instagram: https://www.instagram.com/tictoc

Watch all of TicToc’s videos: https://www.tictoc.video/

Listen to TicToc’s podcast: https://apple.co/2D3Vta7
Subscribe to our newsletter: https://bit.ly/2FJ0oQZ

TicToc by Bloomberg is global news for the life you lead. We are a 24/7 news network that covers breaking news, politics, technology, business and entertainment stories from around the globe, supported by a network of Bloomberg’s 2,700 journalists across 120 countries.

source

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

18 Comments
  1. Reece Savage 2 weeks ago
  2. arthur ejiofor 2 weeks ago
  3. Mr Pickle 2 weeks ago
  4. David Z 2 weeks ago
  5. Nick Hewitt 2 weeks ago
  6. Lewis BIG Huber 2 weeks ago
  7. Bernard Brother 2 weeks ago
  8. Edwin Orantes Recinos 2 weeks ago
  9. DRSmetal 2 weeks ago
  10. 5728years ofyourmom 2 weeks ago
  11. GDPops 2 weeks ago
  12. nole 89 2 weeks ago
  13. Canton Boxing Gym 2 weeks ago
  14. Ramon So 2 weeks ago
  15. Stuti Thakker 2 weeks ago
  16. No Name 2 weeks ago
  17. Miles North 2 weeks ago

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Privacy | Terms | Contact