Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez proposed legislation today which would cap credit card interest for banking institutions at 15%. As a Lakewood Bankruptcy Lawyer, I have seen firsthand the damage big banks have levied on consumers struggling to make ends meet because escalation clauses in credit card agreements increase interest being charged to 24% or more after a payment is missed. Credit Unions are already limited to charging no more than 15% on credit card interest, so this proposed legislation would require big banks to do the same.
In addition, the proposed legislation would provide alternatives to the big banks for consumers at post offices. I believe such competition would force banks to become more competitive and offer more services for less cost. Moreover, it would soften the impact of the debt trap many consumers fall into, struggling to make the minimum payments, month after month after month without ever cutting into their principal balances.
If you are struggling with the credit card interest being charged on your account each month, I would be pleased to speak with you during a free, initial bankruptcy consultation.