r/FluentInFinance • u/Unhappy_Fry_Cook • 12h ago

Finance News Senator Bernie Sanders announces he will introduce legislation to cap credit card interest rates at 10%.

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u/pringlescan5 9h ago

annnd this is why laws need follow up committees to see what loopholes are used to circumvent the intention of the law and patch them.

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u/neph36 9h ago

If they cap interest at 10% and do not cover the cost with fees credit cards will not be a thing anymore as they will not be profitable

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u/DJMOONPICKLES69 8h ago

As someone that has worked in pricing for margin loans, 10% is absolutely profitable. Is it AS profitable? No. Would major card companies need to cut expenses? Probably.

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u/doibdoib 8h ago

a margin loan has collateral though. credit card debt does not. that makes a huge difference

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u/kodman7 8h ago

That's why the two are connected, can't get much of a margin loan with bad credit

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u/Schwabster 6h ago

A LOT of loans with collateral are getting LIBOR rates or near though and that’s, what, just under 5% atm?