Sen. Josh Hawley (R-Mo.) introduced a bill yesterday that would cap the interest rate for credit cards at a “common sense level” of 18 percent in an effort to protect vulnerable borrowers, The Hill reported. “Americans are being crushed under the weight of record credit card debt — and the biggest banks are just getting richer,” Hawley said. “Capping the maximum credit card interest rate is fair, common-sense, and gives the working class a chance,” he added. American credit card debt passed $1 trillion this summer, contributing to quickly rising consumer debt, which grew by nearly $18 billion from May to June, according the most recent federal data available. The average U.S. household carries about $10,000 in credit card debt, according to another analysis. Credit card debt fell significantly in 2020 after the government sent out stimulus checks, but the figure has continued to rise since then, now surpassing its previous pre-pandemic high. Interest rates on credit card debt have also increased in recent months. The average rate was about 21 percent as of June. It was about 17 percent last spring. Hawley’s legislation would also prevent credit card companies from implementing fees to get around the 18-percent cap and issue penalties to enforce the limits.
