Drudge Retort: The Other Side of the News
Wednesday, May 15, 2019

The vast majority of Republicans support Alexandria Ocasio-Cortez and Bernie Sanders' plan to cap credit-card interest rates at 15% The vast majority of both Republican and Democratic primary voters support Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders' plan to cap credit-card interest rates.

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Nearly 70% of Republican primary voters and 73% of Democratic primary voters said they either support or strongly support the proposal, according to a new INSIDER poll.

#1 | Posted by PunchyPossum at 2019-05-14 10:45 PM | Reply

It would be the single greatest measure ever taken on behalf of the people.

That's why Democratic party leaders will never support it.

This is why I like Bernie. He actually brings forward policy that benefits everyone except the greedy.

#2 | Posted by SheepleSchism at 2019-05-14 10:53 PM | Reply

This will result in the law of unintended consequences. The results will be tighter credit card issuing standards and lower max balances. So, about a month after it passes we will get article after article about how credit is being restricted for the poor and minorities.

#3 | Posted by iragoldberg at 2019-05-14 11:14 PM | Reply | Funny: 1 | Newsworthy 2

Ramping up his latest push for the White House, Bernie Sanders is taking aim at high interest rates on credit cards and payday loans.

The Vermont senator introduced legislation in May 2019 -- along with U.S. Rep. Alexandria Ocasio-Cortez -- that would cap both rates at 15%.

Bernie Sanders: ‘Exploitative' payday loans in Wisconsin average 574% annual rate "exploitative lending that keeps Americans trapped in debt"

POLITIFACT RATING=MOSTLY TRUE
www.politifact.com

#4 | Posted by PunchyPossum at 2019-05-14 11:47 PM | Reply

...article after article about how credit is being restricted for the poor and minorities.
#3 | POSTED BY IRAGOLDBERG

The real crime is the financial slavery of the poor and uneducated.

Denying credit is a moral responsibility for those it would ensnare.

Likewise, I'm thrilled to see the class-action lawsuits coming for the generic Pharma barons.

#5 | Posted by SheepleSchism at 2019-05-14 11:52 PM | Reply

3 | Posted by iragoldberg at 2019-05-14 11:14 PM

Lets keep poor people traped in cycle of poverty by charging them extreme interest rates that they cant afford.

#6 | Posted by PunchyPossum at 2019-05-14 11:54 PM | Reply

This is why I like Bernie. He actually brings forward policy that benefits everyone except the greedy.

Have you thought through the second, third, and nth order effects of a cap on interest?

I don't think you have.

#7 | Posted by madbomber at 2019-05-15 12:36 AM | Reply

"The results will be tighter credit card issuing standards and lower max balances. So, about a month after it passes we will get article after article about how credit is being restricted for the poor and minorities."

I also think it would result in fewer perks being offered to premium card holders. I'm an AMEX dude, and I get incredible benefits from the six AMEX cards I hold. I suspect they're able to provide me with these bennies because someone else is carrying a balance on a high interest card. And that's the thing about AMEX...you NEVER want to carry a balance.

#8 | Posted by madbomber at 2019-05-15 12:39 AM | Reply

"The Sanders and Ocasio-Cortez proposal would allow the Federal Reserve Board to increase the rate cap for a period of 18 months but only if there are adverse circumstances threatening the "safety and soundness" of the financial system."

The Intercept

#9 | Posted by PunchyPossum at 2019-05-15 12:47 AM | Reply

"I suspect they're able to provide me with these bennies because someone else is carrying a balance on a high interest card. And that's the thing about AMEX...you NEVER want to carry a balance.
#8 | POSTED BY MADBOMBER"

No, it is actually not that at all. For on-time payers, the value is in charging the merchants a transactions fee that is invisible to the credit card holder. For Amex, this can be 3.5% of the transaction fee - so that 1% back you get still generates huge profits. This is even more outrageous for debit transactions where there is literally zero chance of non-payment and similar fees are charged for processing the payment. Interest is just one of the means by which they profit.

#10 | Posted by iragoldberg at 2019-05-15 01:50 AM | Reply

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Delaware would go broke. High interest Credit cards is about the only thing that state produces. Seriously tho, I have a credit rating of 790 and my card is at 22%, that is so wrong. I am about to dump Discover and find something else.

#11 | Posted by docnjo at 2019-05-15 02:21 AM | Reply

The results will be tighter credit card issuing standards and lower max balances.

#3 | POSTED BY IRAGOLDBERG

Why would there need to be tighter standards and lower max balances when consumers are going to find it easier to pay their bills? Double the interest makes it much harder to keep up with, not easier.

#12 | Posted by Derek_Wildstar at 2019-05-15 02:52 PM | Reply

I would really like to know what Biden's position is on this key issue.

#13 | Posted by danni at 2019-05-15 03:16 PM | Reply

When I was young, before Ronald Reagan ruined our economy maximum interest rate allowed by law was 18%.

#14 | Posted by danni at 2019-05-15 03:18 PM | Reply

"charging the merchants a transactions fee that is invisible to the credit card holder."

Perhaps not visible, but perhaps passed on to the card holder.

I always found this staggering - that credit card companies are skimming off a couple % of what, a gazillion transactions a day?
Nice work, if you can get it...

#15 | Posted by schifferbrains at 2019-05-15 03:28 PM | Reply

#14 | Posted by danni, You must have been asleep during the Carter years. The big change in interest rates was caused by a Supreme Court's decision that allowed financial institutions to do businesses in other states. Before then lenders were under the restrictions in effect in each state. The max allowed in Texas was 20%. Nebraska and New Jersey live on usury. Nebraska is the home of many pay day loan companies and New Jersey has a near majority of credit cards are issued in this country. Want to fight this? Don't carry a balance on your cards. Never use a payday loan firm, ever.

#16 | Posted by docnjo at 2019-05-15 04:11 PM | Reply

"Want to fight this? Don't carry a balance on your cards. Never use a payday loan firm, ever.'

Not using payday loans doesn't fight payday loans.

It just means you don't have a dog in the fight.

Banning payday loans, now that would be fighting payday loans.

#17 | Posted by snoofy at 2019-05-15 04:18 PM | Reply

And considering the bond market is twice the size of thw stock market, your exhortations to not use credit seem misplaced.

#18 | Posted by snoofy at 2019-05-15 04:21 PM | Reply

"New Jersey has a near majority of credit cards are issued in this country."

You're confusing New Jersey with Delaware.

#19 | Posted by Danforth at 2019-05-15 04:55 PM | Reply

#MAGA

#20 | Posted by chuffy at 2019-05-15 07:01 PM | Reply

Also cap the transaction fees. These moneyhandler swine make 90 billion dollars a year just on transaction fees. Cash and checks are king for us little folk.

I'm seeing more extra fees assessed for plastic transactions these days from many establishments.

What race of people predominates bank/money control? Theese parasites should get hanged for this.

#21 | Posted by mutant at 2019-05-15 08:06 PM | Reply

Jews?

#22 | Posted by snoofy at 2019-05-15 08:07 PM | Reply

Aliens brother

#23 | Posted by mutant at 2019-05-15 08:43 PM | Reply

"Perhaps not visible, but perhaps passed on to the card holder.
#15 | POSTED BY SCHIFFERBRAINS"

No - they are not passed onto the cardholder under the merchant adds a specific amount to the transaction for using credit/debit. In the CA this is common for a couple of the gas station chains but I would say 90%+ of merchants just eat the cost or try to reduce it by not accepting the highest % cards like Amex. Unless you are paying a different price than cash buyers, the merchant is paying your fee.

#24 | Posted by iragoldberg at 2019-05-15 10:03 PM | Reply

So what. The gop will water it down.

#25 | Posted by fresno500 at 2019-05-15 11:27 PM | Reply

Dumb idea.............. That will tighten up credit and force the poor to go to loan sharks.

#26 | Posted by Sniper at 2019-05-16 12:11 PM | Reply

Greeeeaaaaat. Now I'm going to end up losing even more money out of my pocket because people with little responsibility want a free pass. All this will do is keep interest rates higher for those who have worked hard to get rid of debt and have good credit scores. I'm all for capping for people who legitimately are just in bad situations, but for the majority this is just going to make everyone else pay more. Instead of offering lower rates to those with good credit ratings, they will keep the interest high for everyone because we are the ones paying for the losses incurred by those who default. Since they can't get more from them, then they have to get more from us.

It's not coincidence that the poll numbers fall pretty much in line with our economic separations.

#27 | Posted by humtake at 2019-05-16 12:17 PM | Reply

"Greeeeaaaaat. Now I'm going to end up losing even more money out of my pocket because people with little responsibility want a free pass."

#27 | POSTED BY HUMTAKE AT 2019-05-16 12:17 PM | FLAG: Not really as many with low FICOs will no longer qualify for a card as they tend to be the highest risk [for default]. After all, there is no right to a credit card. This may be good as it should inspire more companies to bring back layaway plans which will save these high risk individuals from going into debt - but it means no longer can they have instant gratification as that will be replaced with anticipation [when the item is paid for and they can pickc it up].

#28 | Posted by MSgt at 2019-05-16 02:28 PM | Reply

Face it guys, some people should not be given credit. When they default, we, not the welsher pay the debt.

#29 | Posted by docnjo at 2019-05-16 04:07 PM | Reply | Newsworthy 1

#27

I have a 791 credit score and my rate is higher than 15% and I bet yours is too so no you will not be paying more, you will be paying less too.

I think this is a good move as it will keep credit out of the hands of those who shouldn't have it. In my early 20's I was one of those people. It took till my mid 30's to dig my way out and once fees were added in I paid for my purchases almost 4 times.

Now the only interest I pay is my mortgage, everything else I don't buy until I have the cash. Then I charge it to get the points and pay it off the day it shows up on my balance. So either way this law doesn't affect me but I'm all for it.

#30 | Posted by TaoWarrior at 2019-05-16 04:53 PM | Reply

Face it guys, some people should not be given credit. When they default, we, not the welsher pay the debt.

#29 | POSTED BY DOCNJO AT 2019-05-16 04:07 PM | REPLY

So why do you support the side that actively fights rules that would check whether people have the ability to repay payday loans?

The rule, which among other things would obligate lenders to confirm that people can actually afford to repay their loans, was set to go into effect in January but was put on hold by the interim head of the CFPB, Trump appointee Mick Mulvaney. A joint resolution introduced last week by South Carolina Republican Senator Lindsey Graham would eliminate strict regulations on short-term, small-dollar lenders imposed by the federal Consumer Financial Protection Bureau (CFPB) and prevent the agency from issuing a similar rule in the future.

prospect.org

www.cleveland.com

The ruling Republicans heeded Luetkemeyer, not Ellison. They defeated all his amendments on virtual party-line votes. His move to keep CFPB control over the payday lenders lost 186-221, with 218 Republicans voting "no" and all but three Democrats voting "yes."

#31 | Posted by hatter5183 at 2019-05-16 05:12 PM | Reply

I have a 791 credit score and my rate is higher than 15% and I bet yours is too

#30 | Posted by TaoWarrior

I pay it off all time so I really don't care.

#32 | Posted by Sniper at 2019-05-16 05:29 PM | Reply

The results will be tighter credit card issuing standards and lower max balances.

Banks will make less on credit cards, so as a reaction they will issue even less credit (thereby making even less)? No.

#33 | Posted by JOE at 2019-05-16 06:08 PM | Reply

#19 | Posted by Danforth My bad, you are absolutely correct, but in my defense when I think of a small corrupt state that lives off corruption and ignorance, New Jersey and Delaware are peas in a pod.

#34 | Posted by docnjo at 2019-05-16 06:36 PM | Reply

It would be the single greatest measure ever taken on behalf of the people.

Which is why it will never actually happen.

But it's smart of Bernie to tackle legislative proposals like this to differentiate himself from people like Biden.

#35 | Posted by JOE at 2019-05-16 06:38 PM | Reply

Which is why it will never actually happen.
#35 | POSTED BY JOE

Why not, Joe. Why wouldn't the entire Dem party get behind this?

#36 | Posted by SheepleSchism at 2019-05-16 06:56 PM | Reply

Why not, Joe. Why wouldn't the entire Dem party get behind this?

#36 | POSTED BY SHEEPLESCHISM AT 2019-05-16 06:56 PM | REPLY

did you miss the part where the CFPB made this rule and the republicans delayed and then reversed it? All but 3 Democrats voted for this but all but 3 republicans voted against it?

#37 | Posted by hatter5183 at 2019-05-16 08:49 PM | Reply

so many excuses, I guess they all just shrugged and said, "well we tried"

If Dems spent as much time selling the American people on a proposal that benefits them

The people would respond. same on Medicare for all, college tuition, anything, everything.

But no, Dems want see Fatso's taxes and what the redactions say.

#38 | Posted by SheepleSchism at 2019-05-16 08:57 PM | Reply

Why wouldn't the entire Dem party get behind this?

Because many of them are owned by corporate special interests?

I'm not a spokesman for the Democratic Party. I've only voted for one Dem in my life and that was when the alternative was Trump, so you can buzz off.

#39 | Posted by JOE at 2019-05-16 09:07 PM | Reply

If Dems spent as much time selling the American people on a proposal that benefits them
The people would respond. same on Medicare for all, college tuition, anything, everything.

#38 | POSTED BY SHEEPLESCHISM AT 2019-05-16 08:57 PM | REPLY

So you admit the republican platform is not what the people want since they oppose all of those things

#40 | Posted by hatter5183 at 2019-05-16 09:11 PM | Reply

I can't believe anyone would think that 15% is too low. I've never paid a dime of credit card interest my whole life. The way to do that is to not use a card unless you have the cash to pay the bill.

#41 | Posted by Whatsleft at 2019-05-16 09:19 PM | Reply

#40 | POSTED BY HATTER5183

The American people seem to fluctuate back-and-forth every decade or so.

But as for me, I prefer liberal policies. However, I believe the Dem party has become corrupted by centrists

who pretend to care about the poor and working class, but whose allegiance is to banks, corporations, and special interests.

Until it's taken back or destroyed and rebuilt (3rd party?), I won't support its continuance.

#42 | Posted by SheepleSchism at 2019-05-16 09:22 PM | Reply

LOL...Obama was going to fix this, lol,,then the democrats were going to fix this, then the republicans were going to fix this....and on and on it will go with the blessing and foolishness of the liberal left forever thinking this is going to happen.

how blindly stupid can they continually keep hoping.

#43 | Posted by Crassus at 2019-05-17 02:18 AM | Reply

LOL...Obama was going to fix this, lol,,then the democrats were going to fix this, then the republicans were going to fix this....and on and on it will go with the blessing and foolishness of the liberal left forever thinking this is going to happen.
how blindly stupid can they continually keep hoping.

#43 | POSTED BY CRASSUS AT 2019-05-17 02:18 AM | REPLY

Obama and the Democrats DID fix this. The republicans don't want to fix it and actively blocked Obama's fix.

Both sides are not the same. they are opposites

All but 3 democrats voted to keep the rule that would cap interest rates and require lenders to determine the ability of a person to repay the loan

All but 3 republicans voted to void the rule.

BOTH SIDES ARE NOT THE SAME. ONLY PEOPLE ON THE SIDE THAT ACTIVELY VOTES AGAINST THE PUBLIC GOOD SAYS THEY ARE

#44 | Posted by hatter5183 at 2019-05-17 10:20 AM | Reply

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