Credit Card Interest Rates?

[PoPPeR]

I'm doing a research project and I'm thinking of trying to prove that the government should mandate premium credit card interest rates at around 17%. What do you get charged for your credit card bill when you don't pay it all off? Whose your carrier, good/bad credit, etc. I appreciate any info, i've gone to some websites to research these things but as I understand the interest rates can fluctuate. Thanks again

 

[KK]

Why get the government involved in this? If someone is stupid enough to get a credit card with above 17% interest, serves them right. I understand you got to build credit to get a good interest rate, but there are ways you can avoid paying 17%. Should the government get involved in how much you should make?

KK

 

[PsychoAndy]

Here's an idea: Mandate not charging the merchant.

-PAB

 

[PoPPeR]

This isn't exactly something i strongly believe in, its just something that has enough benefits that it could help out our economy. If the government caps premium interest rates at 17%, banks either have to give the card at 17% to someone who has questionable credit, or not give them a card at all. The most obvious benefit of this would be put more money back in the hands of those currently getting charged with high interest rates, which should help slightly reduce the number of bankruptcies, and on a sub note, the bill I would create would also put restrictions on students who can gain access to a credit card. Such as those already depending on student loans from the government shoudln't be allowed to take in even more debt so they're so far in by the time they get out of college that its almost impossible to get out.

Erm, yeah our project is that we're pretending to be congress and we have to create a bill. I got banking as my topic so here I am with this proposed bill.

 

[klah]

I believe all states already have general usury limits which limit the amount of interest that can be charged. This is usually Prime + X%.

 

[PoPPeR]

is there any website that would show that law?

 

[klah]

Originally posted by: PoPPeR
is there any website that would show that law?

Here are two stories:
http://www.bankrate.com/nsc/news/cc/20020320a.asp
http://www.bankrate.com/brm/news/cc/19980202.asp

Arkansas appears to have the lowest legal limit with Prime + 5%.
Hawaii, D.C. and New York are near 25% total.


Do a google search for 'state usury laws' for more.

 

[PoPPeR]

ah, thank you very much. Creating this bill woudl be quite a problem if enough states already enforce a similar law or if its unconstitutional =/