WILL BANKS BE REQUIRED TO CAP CREDIT CARD INTEREST?

On the surface, it seems like a great idea to cut interest rates for credit cards, but let's look at the impact.

Banks are already throttling credit card lines of credit because Trump announced plan to cap outrageous interest rates.  Consumers who were give very large credit lines, are now receiving letters alerting that their credit card limit is being reduced. Many consumers were using their credit cards for daily living expense, then making minimum payments.

Credit Card defaults are at a record level.

At the same time, zillion of $$$ are being cut from NGO'S and terminated government employees.

This will also curb credit card purchasing, and impact home refinancing / second mortages because of credit rating damage.

As demand drops, there will be fewer dollars used for travel, restaurants, salons, and all retail.

Credit card defaults in 2024 have surged to their highest level since 2010, with lenders writing off over $46 billion in seriously delinquent loans during the first nine months of the year, marking a 50% increase from 2023. This rise in defaults reflects the financial strain on consumers, particularly among lower-income households.

Consumer financial health could impact banks and financial institutions much more than inflated real estate derivitives did in 2008

Considering the 5x impact of "velocity of money", this will have a big impact on the economy.

A good time to focus on competive marketing.  Think "Market Share".