ICBA opposing congressional efforts to advance rate caps

ICBA and other groups expressed united opposition to a legislative proposal to impose a national cap on the fees and interest charged on consumer loans.

National Rate Cap: Sen. Jack Reed (D-R.I.) is advancing an amendment to government funding legislation that would impose a 36% national rate cap. In a joint letter, the groups said the proposed cap would make it more difficult for many consumers to obtain credit, thereby harming the very consumers the legislation seeks to protect.

Credit Card Cap: ICBA and other groups last week expressed opposition to separate Senate legislation introduced by Sen. Josh Hawley (R-Mo.) that would create an all-in annual percentage rate cap for credit cards of 18%. The Capping Credit Card Interest Rates Act (S. 2760) would restrict credit availability to consumers, the groups said.

Outlook: With various government funding bills circulating on Capitol Hill as the fiscal year ends this week, ICBA continues working to ensure they extend vital programs while excluding policies that would harm community banks and their customers.