Why Bernie Sanders and AOC are trying to cap credit card rates

Updated

Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez are set to unveil legislation that looks to cap credit card rates. Sanders joined Ali Velshi and Stephanie Ruhle to talk about the proposed legislation and how it could help Americans who are living paycheck to paycheck.

“What makes what banks are doing today so outrageous, is that they’re borrowing at 2.5 percent, and half of the people who are paying interest rates are paying more than 21 percent,” Sanders told Velshi and Ruhle. He continued saying that Wall Street, drug companies and insurance companies are practically running Congress. “Every major religion, Christianity, Judaism, Islam, every religion understands that usury and loansharking are immoral. And let’s call this what it is. It’s immoral.”

5/9/19, 2:14 PM ET

Sen. Sanders, Rep. Ocasio-Cortez to unveil legislation capping…

Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez to introduce legislation that plans to cap credit card interest rates at 15 percent.
Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez to introduce legislation that plans to cap credit card interest rates at 15 percent.

Americans owe more than $1 trillion worth of credit card debt, according to the Federal Reserve, with an average interest rate on that debt of 17.73 percent, reports CreditCards.com.

Key points on agenda Sanders and Ocasio-Cortez’s bill:

  • Cap credit card interest rates at a maximum of 15 percent

  • Cap payday loan interest rates at 15 percent
  • Allow low-income communities to use post offices for bank services 

Sanders illustrated that half of Americans today have no wealth and live paycheck to paycheck, while getting charged high interest rates.

“We have to stand up to the greed of Wall Street and change [this],” Sanders said.  “To make it easier for payday lenders to get blood out of a stone is really disgraceful.”

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