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Sanders, AOC Call for Cap on Credit Card Rates

14 May 2019

Ocasio-Cortez would cap credit card interest rates at 15 percent.

The two self-identified democratic-socialists are set to propose legislation on Thursday capping rates on credit card and other consumer loans and letting post offices offer low-priced basic financial services, such as loans and checking and savings accounts.

The Loan Shark Prevention Act was lauded by consumer advocacy groups, and garnered the endorsements of Consumer Action, NETWORK Lobby for Catholic Social Justice, Demand Progress Action, Franciscan Action Network, National Advocacy Center of the Sisters of the Good Shepherd, CREDO Action, Community Change Action, Center for Popular Democracy, American Federation of State, County and Municipal Employees (AFSCME), and People's Action.

Read Sanders' and Ocasio-Cortez's white paper here.

"Let's be clear what we're talking about: We're talking about economic brutality", said Sanders, a Democratic presidential candidate. Elizabeth Warren's universal child care plan will have an edge over their rivals.

Since then, her star has continued to burn brightly in the eyes of activists, and she has become natural allies with Mr. Sanders and other liberal champions on Capitol Hill, where she has led the charge for proposals such as the Green New Deal and "Medicare for All".

"We should not be using people's misfortune and using people's income status as a basis for extortion and a basis for predatory lending", she said.

The draft bill would set a 15 percent cap on credit card interest rates, with some allowance for exceptions in case of higher interest rates on deposits and elsewhere within the banking system. And based on her comments Thursday, it seems Sen. Joe Manchin III (D-WV) for ranking Democrat on the Energy and Natural Resources Committee, the firebrand democratic socialist told The New York Times on December 8 that she was concerned because, "I do not believe that we should be financed by the industries that we are supposed to be legislating and regulating and touching with our legislation".

Polls suggest that message is hitting home.

Mr. Sanders trailed Mr. Biden by a 29% to 19% margin in late March and now trails him by a 38% to 11% margin in the Quinnipiac University Poll.

But the first votes won't be cast in the Iowa caucuses for another eight months. They impact urban communities like those that I represent, and it's amusing because you would think in a densely-populated community like the Bronx or like Jackson Heights that you'd be able to have a bank on every corner.

Sanders, AOC Call for Cap on Credit Card Rates