Citigroup CEO Credit Card Rate Cap Approval Unlikely in Congress
Citigroup CEO Jane Fraser expresses skepticism over a federal credit card rate cap being approved by Congress. Read about the regulatory outlook and bank profitability.
Will your credit card debt ever get cheaper? Don't bet on it just yet. According to Reuters, Citigroup CEO Jane Fraser doesn't expect Congress to approve a federal credit card rate cap. Her skepticism comes as a reality check for those hoping for legislative relief from sky-high interest expenses.
Political Gridlock and Citigroup CEO Credit Card Rate Cap Outlook
Fraser pointed to the complex political landscape in Washington as the primary barrier. Banks argue that capping rates would backfire, forcing lenders to tighten credit standards and cut off access for subprime borrowers. Currently, average credit card APRs are hovering near 22%, leaving many households struggling to keep up with monthly payments.
Regulatory Pressure vs. Legislative Action
While a total interest rate cap seems out of reach, the Consumer Financial Protection Bureau (CFPB) isn't backing down. The agency is targeting 'junk fees' and late payment charges to provide indirect relief. Citigroup and its peers are lobbying heavily against these moves, claiming they'll reduce the overall availability of credit products.
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