This Week In Credit Card News: A Proposed Cap On Credit Card Rates; Buy Now Pay Later Usage Doubled Since 2021

Republican Lawmaker Proposes 18% Cap on Credit Card Interest Rates

Credit card companies should be barred from setting interest rates higher than 18%, a Republican lawmaker from Missouri proposed Tuesday. If passed, U.S. Senator Josh Hawley’s bill, the Capping Credit Card Interest Rates Act, would also block credit card companies from introducing new fees aimed at evading the cap and penalize lenders with annual percentage rates that exceed 18%. Hawley’s bill comes as Americans are grappling with record-high credit card rates while carrying slightly more than $1 trillion in card debt. The average credit card rate has been inching toward 21% for the past three months and was 20.68% as of last week, making it more expensive for consumers to carry balances, according to Bankrate data. [CBS News]