Do you think credit card companies should be able to charge 30-40% interest? Neither did socialist Senator Bernie Sanders of Vermont. He introduced an amendment to the Credit Card reform bill that would have capped interest rates at 15% (which is the limit on credit unions).
(1) LIMITATION ESTABLISHED.–Notwithstanding subsection (a) or any other provision of law, but except as provided in paragraph (2), the annual percentage rate applicable to an extension of credit obtained by use of a credit card may not exceed 15 percent on unpaid balances, inclusive of all finance charges. Any fees that are not considered finance charges under section 106(a) may not be used to evade the limitations of this paragraph, and the total sum of such fees may not exceed the total amount of finance charges assessed.
Sanders needed 60 votes; he got thirty-three. Twenty-two Democrats voted against him. Of course Lieberman and Specter went with the credit card companies, but so did Patty Murry, Daniel Akaka, and Jon Tester. Freshmen Kay Hagan, Mark Warner, and Jeanne Shaheen voted with the credit card companies.
But Mr. Sanders said the card companies and banks were engaged in conduct that could get others hauled into court. He said one-third of all credit card holders are paying interest above 20 percent and as high as 41 percent.
“When banks are charging 30 percent interest rates, they are not making credit available,” said Mr. Sanders, who noted credit unions are limited to 15 percent. “They are engaged in loan-sharking.”
So, we have 22 Democrats that are for loan-sharking. And still the Republicans call them socialists.
