Sen. Josh Hawley Proposes Bill to Combat Credit Card Interest Rates

A new bill proposal from Senator Josh Hawley (R-Mo.) would see an 18 percent cap for credit card interest rates, if passed. Photo Credit: Shutterstock (Geobor)

Posted September 14, 2023

A new legislation from Senator Josh Hawley (R-Mo.) was introduced on Tuesday in an effort to cap credit card interest rates in the wake of climbing consumer credit card debt.

The bill, Capping Credit Card Interest Rates Act, would see a cap in the annual percentage rate for credit cards at 18 percent if passed. Furthermore, the bill prompts penalties toward credit card companies which impose new fees to evade and violate the cap.

“Americans are being crushed under the weight of record credit card debt—and the biggest banks are just getting richer,” Hawley said in a release. “The government was quick to bail out the banks just this spring, but has ignored working people struggling to get ahead. Capping the maximum credit card interest rate is fair, common-sense, and gives the working class a chance.”

In the release, Hawley argues last year major credit card interest rates broke through the 30 percent threshold for the first time, leading to a record level high. Resulting in citizens facing the same high financial burdens then the biggest banks while holding power in the market, according to the release.

Speaking with the New York Post, a spokesperson for the American Bankers Association (ABA) argued this proposed bill is an unnecessary act of government intervention and overall harmful to the consumer.

“This proposal would harm consumers by restricting access to credit for those who need it the most and driving them toward less regulated, more costly alternatives,” the ABA spokesperson said.

View the Capping Credit Card Interest Rates Act, here.