On Thursday, a leading pair of liberal democrats, Sanders and Ocasio-Cortez had proposed a legislation to cap credit card interest rates alongside other consumer loans at 15 percent to help consumers grapple with an increasing credit card debt in light of a waning wage growth.
Apart from that, the Representative Alexandro Ocasio-Cortez and Senator Bernie Sanders had also called for US postal service to proffer basic banking facilities to deliver a new and affordable competition for the conventional lenders.
Adding that the US credit card interest rates had become a debt trap for the working people, Representative Ocasio-Cortez tweeted, “There is no reason a person should pay more than 15% interest in the United States”.
Adding that no major lenders should be able to yield ‘economic brutality’ for their consumers, Senator Sanders, running for Democratic party’s nomination for the presidential election of 2020, said, “It’s expensive to be poor.
If you’ve got nothing in the bank and living paycheck to paycheck, you’ve got to borrow money from a bank through the use of your credit cards. This is a moral issue. Every major religion on earth has condemned usury”.
In contrast to Sanders’ proposal, a chief industry analyst at CompareCards.com, Matt Schulz had been quoted saying that there had already been a credit card cap of 18 percent in United States, although for some unknown reasons, it was not being applied to major banks.