Debate Over Proposed Interest Rate Cap: Bankers Warn of Reduced Credit Access

The Consumer Bankers Association is responding to a proposed cap on credit card interest rates in the U.S., expressing concerns that such a cap, though aimed at making credit more affordable, could inadvertently reduce access to credit and push consumers towards less regulated, costlier alternatives.

The Consumer Bankers Association (CBA) has raised concerns over a proposed cap on credit card interest rates in the U.S., which aims to help Americans access more affordable credit.

The CBA warns that a 10% interest rate cap could potentially reduce credit availability, contrary to its intended goal.

The association suggests that if enacted, this cap might drive consumers towards less regulated and more expensive credit options, and emphasizes their willingness to collaborate with the administration to ensure fair access to credit.

(With inputs from agencies.)