Holy fuck its a suicide pact with the US consumer. Rack up the debt for a year, then the interest rates slam back in. There are trap credit cards that work just like this. “No interest for the first year” shit
hoppertn on
Hmmm, the state dictating terms and conditions for private industry? I’ve heard the term for this behavior before but I just can’t put my finger on it….
RIP_Soulja_Slim on
I doubt this gets implemented due to legal issues, but even if it did – this is the type of market distortion that would completely wreck an industry.
Credit card interest isn’t high because banks hate consumers, it’s high because credit cards are an unsecured loan that has fairly high default rates. Capping interest isn’t going to magically mean credit cards have low interest, it’s going to mean nobody but the absolute most qualified borrowers will be able to get a credit card.
Even then, 10% is absurd, we’re not that far off from qualified borrowers seeing HELOC rates of around 8-9%, that’s secured by a house. There’s very few borrowers out there that have the income and payment history sufficient for a bank to be comfortable extending any amount of noteworthy credit at a 10% rate. So all you really do is ensure that almost nobody gets credit cards, and most people’s cards get shut down.
But again, I doubt it gets implemented, the president doesn’t have that power.
herlanrulz on
The credit card companies are gonna salivate at this. They take a short 12 month hit to their margins, but on the back end they get a ton of new credit debt locked in by people that might not otherwise do it, creating a bunch more debt slaves for life.
Weird how it only lasts a year. I wonder what happens in just about a year that Trump might want to build up some good will, to get past, then go back to not caring about the poors. *thinking*
dak-sm on
How in the world can this be implemented without new legislation? The president thinks that he can insert himself into the contracts between credit issuers and literally millions of customers?
RightofUp on
I see we’re not even bothering with the pretense of the invisible hand that guides the markets and supply balancing demand.
It’s funny to me that they continue to make increasingly bigger and bigger demands as midterms draw closer. The obvious sign that all is not right in Maga-land.
Large-Investment-381 on
I mean, a consumer friendly idea, right? The consequences: hopefully, some consumers will keep paying the same amounts every month and pay down more principal? But, yeah, companies might have a problem or two with it. Buy put options, guys.
here4the_trainwreck on
The President is impotent. The credit card companies are already prepared for this. They’ll implement monthly fees in lieu of interest. They’ve already updated their cardholder agreements to allow this. You probably got a notice but didn’t read it because nobody does.
Interesting-Dream863 on
Just long enough to the midterms… then it’s back to the usual… what’s the elegant term for it? Rawdogging? It’s not rape if you do it voluntarily…
Wipe_face_off_head on
Oh, cool. First thought was that people are going to bury themselves in debt (if this goes through, which I doubt). No. Issuers will just stop…issuing.
WashedUpChuck on
A LOT more people are going to get denied a credit card. If this happens, it’s not like the exact same people that have a credit card will just magically get their interest reduced. People are going to get their credit cards revoked/denied because of the lower interest rate
formerNPC on
Every time there’s a scandal he pushes some ridiculous scheme to give Americans more money so we’ll forget about invading other countries and turning us into a police state. He’s the ultimate conman and we are all gullible if we think that this idea or any others will actually save us money.
Possible-Nectarine80 on
Conservatives are against big gov’t until Trump commands them to be for it. I’m not a fan of credit card companies and their usury interest rates but where does it end with Trump regulating any industry?
TranzitBusRouteB on
If Kamala was in office and she tried this, House and Senate GOP members would call her a dangerous radical communist trying to control private industry
Karmogeddon on
Is USA a communist dictatorship now since their leader is dictating how the companies should spend their money, for what price to sell their products and where they should invest?
padizzledonk on
>Trump announces one-year 10% cap on credit card interest rates
Remember when the right wingers FLIPPED THE FUCK OUT about “SocIaLisIm!!” when Kamala mentioned price controls on some things may be a good idea?
Requires-Coffee-247 on
“Congratulations on your new Chase Tinny Visa Card! Your credit limit is $125.”
or
“Your credit rating is under 750? Sorry, you do not qualify.”
shhhshhshh on
I wonder if credit cards (if actually held to this) could/would cancel credit line on those with bad scores.
At some point the risk isn’t worth the reward for them, which is why bad credit people have higher rates.
Maybe he can cap rates but how could he possibly prevent the companies from then just denying/cancelling more.
Stereo_Jungle_Child on
If you thought that the President can’t just dictate what interest rates credit card companies can charge, you’re right. He can’t.
This is just another one of Trump’s “The Sun rises and sets at my command” moments. He’s insane.
BoilerMo on
18% reduced to 10% for a year then upped to 28% the following year once the balances increase and the borrower can’t pay them off. Sweet deal for the credit cards companies.
NitWhittler on
Trump has no authority to dictate this. He didn’t work with Congress, any regulatory committees, or the banks on this. He just made it up on a whim.
It’s another of Trump’s empty promises.
JayOnSilverHill on
It’s ok though, because he dismantled the agency (the CFPB) that would investigate and penalize these companies if they overcharge consumers. So, no need to worry, you can still get charged 30% interest without the big, bad government hurting Capitalism.
8to24 on
People voted for Trump in large part because they bought into the idea he would create jobs. People want good paying careers. Credit schemes that encourage taking on debt isn’t what people thought they were going to get.
The easiest way for the govt to create jobs is through large infrastructure projects that encourage private investment. FedEx, Uber, UPS, Amazon, etc rely if the National Highway system. Southwest, Delta, and the tourism industry relies on the FAA and the local investment made in Airports.
Instead of $150 billion to DHS & ICE money should be pouring into High Speed Rail, bike Lanes & green belts to support the growth/ adoption of ebikes, upgrading water filtration systems for PFAS, dredging projects so larger ships can get into our ports, etc.
Minimum_Virus_3837 on
Like many other things this is not something that can be dictated by executive order. Some companies may do it as appeasement, or were already offering “no interest for a year” deals for new card holders and can make the change with little effort to get on his good side, but him saying this has no power to actually make it happen.
wmonfalcone on
I’m 90% sure both this and the ban on large corporations owning single family homes are both just threats he’s making to those industries to make them pay up bribes. Whether these things are or aren’t good policy is a waste of time to debate- they aren’t actually going to happen.
JaeMack on
Would never be implemented, but if it were, it would just mean a huge amount of people would be looking at canceled credit cards, I’m sure those with balances would quickly be sold for pennies on the dollar to collection agencies.
Background-Wolf-9380 on
Yam tits is lying again. In no way shape or form does he have the power to do this and credit card companies are going to just laugh at it and keep charging everyone 20%+
Jarek86 on
This is the same fuckwad who promised America First and just offered every person in Greenland $100,000 and gave Argentina over a billion dollars….
icecoldtoiletseat on
Pretty sure this dude doesn’t have the legal authority to do this on his own.
Not that I wanna defend credit card companies, but, um, since when does any president have the authority to tell them how to conduct their business? Just going out on a limb here, but I read somewhere that this was Congress’s job. Something, something commerce, something something.
Bozihthecalm on
Ahh yes, I’ll take out $50,000 with only 10% interest per month. It’ll be expensive but it’s stretched over ten years so I can somehow manage it.
One year later, interest rates return to 30%+
Oh… now I need to pay $1,500 a month instead of $500 a month, and after half a year everything I saved is already lost. And through interest alone I now have to pay a total of $145,000 instead of $55,000. Now I either declare bankruptcy, become a debt slave, or just really bite that bullet.
AntonChigurhWasHere on
Trump announces a lot of shit that is not true. This is just another example of
Obama tried to limit insurance company profits to benefit average Americans and Republicans are still bitching about it 20 years later.
They should have bought more Trump Crypto products.
31 Comments
Holy fuck its a suicide pact with the US consumer. Rack up the debt for a year, then the interest rates slam back in. There are trap credit cards that work just like this. “No interest for the first year” shit
Hmmm, the state dictating terms and conditions for private industry? I’ve heard the term for this behavior before but I just can’t put my finger on it….
I doubt this gets implemented due to legal issues, but even if it did – this is the type of market distortion that would completely wreck an industry.
Credit card interest isn’t high because banks hate consumers, it’s high because credit cards are an unsecured loan that has fairly high default rates. Capping interest isn’t going to magically mean credit cards have low interest, it’s going to mean nobody but the absolute most qualified borrowers will be able to get a credit card.
Even then, 10% is absurd, we’re not that far off from qualified borrowers seeing HELOC rates of around 8-9%, that’s secured by a house. There’s very few borrowers out there that have the income and payment history sufficient for a bank to be comfortable extending any amount of noteworthy credit at a 10% rate. So all you really do is ensure that almost nobody gets credit cards, and most people’s cards get shut down.
But again, I doubt it gets implemented, the president doesn’t have that power.
The credit card companies are gonna salivate at this. They take a short 12 month hit to their margins, but on the back end they get a ton of new credit debt locked in by people that might not otherwise do it, creating a bunch more debt slaves for life.
Weird how it only lasts a year. I wonder what happens in just about a year that Trump might want to build up some good will, to get past, then go back to not caring about the poors. *thinking*
How in the world can this be implemented without new legislation? The president thinks that he can insert himself into the contracts between credit issuers and literally millions of customers?
I see we’re not even bothering with the pretense of the invisible hand that guides the markets and supply balancing demand.
It’s funny to me that they continue to make increasingly bigger and bigger demands as midterms draw closer. The obvious sign that all is not right in Maga-land.
I mean, a consumer friendly idea, right? The consequences: hopefully, some consumers will keep paying the same amounts every month and pay down more principal? But, yeah, companies might have a problem or two with it. Buy put options, guys.
The President is impotent. The credit card companies are already prepared for this. They’ll implement monthly fees in lieu of interest. They’ve already updated their cardholder agreements to allow this. You probably got a notice but didn’t read it because nobody does.
Just long enough to the midterms… then it’s back to the usual… what’s the elegant term for it? Rawdogging? It’s not rape if you do it voluntarily…
Oh, cool. First thought was that people are going to bury themselves in debt (if this goes through, which I doubt). No. Issuers will just stop…issuing.
A LOT more people are going to get denied a credit card. If this happens, it’s not like the exact same people that have a credit card will just magically get their interest reduced. People are going to get their credit cards revoked/denied because of the lower interest rate
Every time there’s a scandal he pushes some ridiculous scheme to give Americans more money so we’ll forget about invading other countries and turning us into a police state. He’s the ultimate conman and we are all gullible if we think that this idea or any others will actually save us money.
Conservatives are against big gov’t until Trump commands them to be for it. I’m not a fan of credit card companies and their usury interest rates but where does it end with Trump regulating any industry?
If Kamala was in office and she tried this, House and Senate GOP members would call her a dangerous radical communist trying to control private industry
Is USA a communist dictatorship now since their leader is dictating how the companies should spend their money, for what price to sell their products and where they should invest?
>Trump announces one-year 10% cap on credit card interest rates
Remember when the right wingers FLIPPED THE FUCK OUT about “SocIaLisIm!!” when Kamala mentioned price controls on some things may be a good idea?
“Congratulations on your new Chase Tinny Visa Card! Your credit limit is $125.”
or
“Your credit rating is under 750? Sorry, you do not qualify.”
I wonder if credit cards (if actually held to this) could/would cancel credit line on those with bad scores.
At some point the risk isn’t worth the reward for them, which is why bad credit people have higher rates.
Maybe he can cap rates but how could he possibly prevent the companies from then just denying/cancelling more.
If you thought that the President can’t just dictate what interest rates credit card companies can charge, you’re right. He can’t.
This is just another one of Trump’s “The Sun rises and sets at my command” moments. He’s insane.
18% reduced to 10% for a year then upped to 28% the following year once the balances increase and the borrower can’t pay them off. Sweet deal for the credit cards companies.
Trump has no authority to dictate this. He didn’t work with Congress, any regulatory committees, or the banks on this. He just made it up on a whim.
It’s another of Trump’s empty promises.
It’s ok though, because he dismantled the agency (the CFPB) that would investigate and penalize these companies if they overcharge consumers. So, no need to worry, you can still get charged 30% interest without the big, bad government hurting Capitalism.
People voted for Trump in large part because they bought into the idea he would create jobs. People want good paying careers. Credit schemes that encourage taking on debt isn’t what people thought they were going to get.
The easiest way for the govt to create jobs is through large infrastructure projects that encourage private investment. FedEx, Uber, UPS, Amazon, etc rely if the National Highway system. Southwest, Delta, and the tourism industry relies on the FAA and the local investment made in Airports.
Instead of $150 billion to DHS & ICE money should be pouring into High Speed Rail, bike Lanes & green belts to support the growth/ adoption of ebikes, upgrading water filtration systems for PFAS, dredging projects so larger ships can get into our ports, etc.
Like many other things this is not something that can be dictated by executive order. Some companies may do it as appeasement, or were already offering “no interest for a year” deals for new card holders and can make the change with little effort to get on his good side, but him saying this has no power to actually make it happen.
I’m 90% sure both this and the ban on large corporations owning single family homes are both just threats he’s making to those industries to make them pay up bribes. Whether these things are or aren’t good policy is a waste of time to debate- they aren’t actually going to happen.
Would never be implemented, but if it were, it would just mean a huge amount of people would be looking at canceled credit cards, I’m sure those with balances would quickly be sold for pennies on the dollar to collection agencies.
Yam tits is lying again. In no way shape or form does he have the power to do this and credit card companies are going to just laugh at it and keep charging everyone 20%+
This is the same fuckwad who promised America First and just offered every person in Greenland $100,000 and gave Argentina over a billion dollars….
Pretty sure this dude doesn’t have the legal authority to do this on his own.
Not that I wanna defend credit card companies, but, um, since when does any president have the authority to tell them how to conduct their business? Just going out on a limb here, but I read somewhere that this was Congress’s job. Something, something commerce, something something.
Ahh yes, I’ll take out $50,000 with only 10% interest per month. It’ll be expensive but it’s stretched over ten years so I can somehow manage it.
One year later, interest rates return to 30%+
Oh… now I need to pay $1,500 a month instead of $500 a month, and after half a year everything I saved is already lost. And through interest alone I now have to pay a total of $145,000 instead of $55,000. Now I either declare bankruptcy, become a debt slave, or just really bite that bullet.
Trump announces a lot of shit that is not true. This is just another example of
Obama tried to limit insurance company profits to benefit average Americans and Republicans are still bitching about it 20 years later.
They should have bought more Trump Crypto products.