No Interest Rates Cap for Mastercard or Visa as Federal Government Does Not Pass Amendment
Posted on | May 20, 2010 | Comments Off
There will be no interest rate cap for banks that offer credit cards with Visa and Mastercard. There was an amendment that was attempted to be passed with the Financial Regulatory Bill that would force a cap on interest rates for banks that offered credit cards with these logos.
At the present time there is no cap on interest rates for credit cards and many in Washington feel that there should be some type of regulation. The amendment that was put on the new financial regulatory bill did not go through but it does not mean that there will not be future amendments.
On the news Visa and Mastercard were some of the only bright sports in the stock market today. To limit the interest rates charged on these credit cards would not only dig into the banks profits but it would also dig into the profits of these two credit card companies.
Over the next several weeks we will hear a lot about new laws and rules that could greatly affect consumers. Most of these laws will likely help consumers save money and might ultimately hurt the profits of some of the banks and financial institutions.
Author: Jeremy North
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