•      "This bill would eliminate access to credit cards for millions of consumers and drive them to sources of credit which are far more costly and less regulated. Many consumers who currently rely on credit cards would be forced to turn elsewhere for short-term financing needs, including pawn shops, auto title lenders, or worse– such as loan sharks, unregulated online lenders, and the black market… Perhaps the title of one of multiple World Bank studies on the effect of rate caps in more than 76 countries puts it most clearly, finding “Interest rate caps around the world: still popular, but a blunt instrument.” That study found that in the countries that implemented interest rate caps, “the evidence points to more negative effects” such as (1) withdrawal of financial institutions from the poor or from specific segments of the market, (2) an increase in illegal lending, (3) a decrease in the licensing of new lending institutions… The study concluded that there were more effective ways to combat high interest rates, such as implementing measures that enhance competition and product innovation, improving financial consumer protection frameworks, increasing financial literacy, promoting credit bureaus, enforcing disclosure of interest rates, and promoting microcredit products." Source: Consumer Bankers Association, America’s Credit Unions, American Financial Services Association, Bank Policy Institute, Independent Community Bankers of America, American Bankers Association, National Bankers Association

•      "DCUC has a well-documented history of opposing blanket interest-rate cap proposals, including similar 10 percent caps raised in the past year. While these ideas are often well-intentioned, our concern has consistently been that a federally imposed 10 percent cap would produce serious unintended consequences—particularly for military families and working Americans who rely on credit unions for responsible, affordable access to credit. A rigid cap would likely reduce access to credit by limiting credit unions’ ability to serve higher-risk borrowers. Many credit unions would be forced to tighten underwriting standards or scale back credit card and small dollar lending altogether. That outcome would disproportionately affect young servicemembers, junior enlisted personnel, and lower-income members who do not yet have prime credit profiles. For military communities, the impact would be especially severe. Defense credit unions routinely provide small-dollar loans, emergency credit, and short-term financial relief to servicemembers facing unexpected expenses. Under an arbitrary 10 percent cap, many of these critical services could become unsustainable." Source: Anthony R. Hernandez, President and CEO of the Defense Credit Union Council (DCUC)