2024 Field

[sturg33]

Lending to non-credit worthy people?

That's up for Capital One to decide. That's why their models have ~6% charge offs within their price. That's the risk they take. Other banks like American Express have much higher standards to who they lend to.

I'm surprised you are in favor of denying an American the opportunity to access credit

 

[chop2chip]

Absolutely - When nobody is lending in these staets people will leave and California would suffer.

But in reality its not an executive branch power but you knew that.

What incentive do states have to attract poverty?

Poverty brings higher crime, more strain on state resources, and with no tax upside.

 

[acesfull86]

That's up for Capital One to decide. That's why their models have ~6% charge offs within their price. That's the risk they take. Other banks like American Express have much higher standards to who they lend to.

I'm surprised you are in favor of denying an American the opportunity to access credit

Denying access to credit leads to a increase in loan sharks which leads to truly predatory lending which leads to violence and an increase in crime which leads to more children growing up in broken homes which leads to more poverty and welfare.

 

[sturg33]

the most frustrating thing about this, is if Kamala Harris had suggested this, the MAGA crowd would have definitely cooked her for it

But Trump is the vessel that takes the country left better than any democrat possibly could

 

[chop2chip]

States do it and the world hasn't come to an end.

Which states have a limit on credit card rates?

I’ll save you the Google. The answer is zero

 

[acesfull86]

the most frustrating thing about this, is if Kamala Harris had suggested this, the MAGA crowd would have definitely cooked her for it

But Trump is the vessel that takes the country left better than any democrat possibly could

Building on that, I’m unable to read every post here …before Trump announced this policy yesterday that apparently has a 100% approval rating among his supporters here, were any of those said supporters calling for a federal cap on credit card interest rates?

I may have just missed them, but I don’t recall those discussions taking place…

 

[sturg33]

Building on that, I’m unable to read every post here …before Trump announced this policy yesterday that apparently has a 100% approval rating among his supporters here, were any of those said supporters calling for a federal cap on credit card interest rates?

I may have just missed them, but I don’t recall those discussions taking place…

“A movement can’t be about the personality of one individual. If all we are is listless vessels that’s just supposed to follow, you know, whatever happens to come down the pike on Truth Social every morning, that’s not going to be a durable movement.”

one of the most profound and prophetic things a politician has ever uttered

 

[Garmel]

Which states have a limit on credit card rates?

I’ll save you the Google. The answer is zero

Yes, there are.

However, these laws typically apply in the state where the credit card issuer is based and not necessarily the state where you live

 

[Garmel]

the most frustrating thing about this, is if Kamala Harris had suggested this, the MAGA crowd would have definitely cooked her for it

But Trump is the vessel that takes the country left better than any democrat possibly could

Well, if Kamala would have something reasonable I would support it. The problem is she would probably go overboard.

Let's not get into the groupthink that you libertarians show on a constant basis, shall we?

 

[chop2chip]

Yes, there are.

However, these laws typically apply in the state where the credit card issuer is based and not necessarily the state where you live

There are usury laws in certain states that cap consumer rates but there is a long list of exceptions of which credit card companies and banks are included on.

There is not a single state that has a cap on credit card interest rate.

 

[chop2chip]

Well, if Kamala would have something reasonable I would support it. The problem is she would probably go overboard.

Let's not get into the groupthink that you libertarians show on a constant basis, shall we?

Well I hate to break it to you but one day someone like AOC is going to be president. I would prefer our system protects us from someone going “overboard”. When we support our candidate doing “unconstitutional” but “good ideas” it erodes those guardrails.

 

[Carp]

None of that refutes what I said in my post …so I’m glad you agree that yes, this is a price control. Which is why I’m confused by Garmel’s comment that I was responding to.

So then I am confused why you think it is communistic. Every government that exists in the world (and likely has ever existed) employs multiple forms of policy that have something in common with communism. That doesn't make those policies communistic.

 

[Garmel]

There are usury laws in certain states that cap consumer rates but there is a long list of exceptions of which credit card companies and banks are included on.

There is not a single state that has a cap on credit card interest rate.

They are not always exempt. You'll notice the site you're getting your info says "often exempt" which doesn't mean always.

"Credit card companies can charge customers, regardless of their state, the interest rates allowed by the company's home state."

 

[chop2chip]

They are not always exempt. You'll notice the site you're getting your info says "often exempt" which doesn't mean always.

"Credit card companies can charge customers, regardless of their state, the interest rates allowed by the company's home state."

It should be easy for you to provide an example then.

 

[acesfull86]

Price controls aren't necessarily communist though. Every government that exists in the world (and likely has ever existed) employs multiple forms of policy that have something in common with communism.

I think I said earlier that I try not to label things as communist or not communist because I generally don’t find it helpful.

It also has nothing to do with the point of this particular exchange, which started when Garmel said:

It'S tHe SaMe As PrIcE cOnTrOlS!

To which I responded…yes, a price cap on CC interest rates is in fact a price control.

 

[Carp]

For the most part I would side on credit loans not being given federal caps. I feel like there is enough competition in the market that the companies practicing predatory loans likely won't stay in business very long. The very people they prey on are notorious for not paying the debts anyways.

 

[Carp]

I think I said earlier that I try not to label things as communist or not communist because I generally don’t find it helpful.

It also has nothing to do with the point of this particular exchange, which started when Garmel said:

It'S tHe SaMe As PrIcE cOnTrOlS!

To which I responded…yes, a price cap on CC interest rates is in fact a price control.

Eh, I guess.

It seemed pretty clear throughout the exchange before that you were blasting MAGA's for supporting this while having the nerve to call Harris a communist.

 

[chop2chip]

I am not a finance guy, but my quick google search says many states have usury laws that cap interest rates, but most banks and CC companies are exempt.

Garmel’s point is that “states do it and the world isn’t burning”, but that reasoning doesn’t apply if Bank of America able to charge whatever interest rate they want.

 

[nsacpi]

For the most part I would side on credit loans not being given federal caps. I feel like there is enough competition in the market that the companies practicing predatory loans likely won't stay in business very long. The very people they prey on are notorious for not paying the debts anyways.

More competition is always a good idea. Not so long ago Walmart applied for a banking license. The banks fought it strenuously and persuaded the regulators to kill the idea. It would have been a very good thang for consumers to have Walmart as a competitor for their banking business. Every business would like to be insulated from competition so they can act like a predator. It is up to us to set the rules so they can't do this.

 

[Garmel]

It should be easy for you to provide an example then.

You're the one who started this argument. Go look for it yourself.

"Credit card companies can charge customers, regardless of their state, the interest rates allowed by the company's home state."

That means someone's doing it.