WASHINGTON–A new survey has found a significant majority of Americans are not just skeptical of capping interest rates on credit cards, but they oppose it.
The survey follows President Trump’s repeated calls for limiting credit card APRs at 10% for one year. Several members of Congress have proposed a five-year cap.
Morning Consult conducted a poll, commissioned by the Consumer Bankers Association, to gauge Americans’ views on the recent proposal to cap interest rates at 10% for one year.
The Findings
Among the takeaways:
- 61% expect new fees
- 60% think fewer people will be approved for credit cards
- 58% believe credit limits on credit cards would be reduced
- 53% expect credit cards will be cancelled for cardholders with lower scores
- 54% worry that rewards programs will be eliminated
According to the analysis of the findings by the CBA, “Americans understand that the unintended consequences of this proposal would be felt by many different types of consumers, from the least creditworthy to the most.”
Folks Who are Most Concerned
The survey found the largest share of respondents were concerned for people who rely on credit cards for emergencies (67%), followed by low-income individuals (64%). Tied for third place were young adults and small business holders (62%).
Nearly two out of three adults understand that new fees will likely be a consequence of limiting interest.
“New fees for cardholders undercut the goals of providing financial relief from credit card debt,” the CBA said, adding that respondents were particularly upset that responsible credit card holders would be punished.
Conservative voters expressed even stronger antipathy to this proposal, the organization added.
