UnidosUS Applauds Senators Hawley and Sanders for New Bi-Partisan Legislation to Cap Credit Card Interest Rates

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WASHINGTON, DC — Eric Rodriguez, senior vice president of policy and advocacy at UnidosUS, the nation’s largest Latino civil rights and advocacy organization, commends U.S. Senators Josh Hawley (R-MO) and Bernie Sanders (I-VT) for introducing a bill in the Senate Committee on Banking, Housing, and Urban Affairs that would direct credit companies to immediately cap interest rates at 10% and would be in effect for five years. 

“This bill would provide enormous financial relief to millions of working-class families across our country, including Latino communities, as many face challenges to make ends meet and afford basic necessities. With current average credit card interest rates at historic highs — over 28% — consumers are paying outrageous amounts just to maintain their debt, forcing many to decide between putting food on the table or paying their credit card. Latino consumers, in particular, are disproportionately impacted, with studies showing that Hispanic communities pay about 1.5% higher interest rates on average. Capping interest rates has the potential to give back hundreds of dollars to those who need it most so they can provide for their families. 

“Providing adequate relief to families’ financial burdens is the right path forward, considering today’s economy, where 60% of Americans say they are living paycheck to paycheck and where household debts are at an all-time high. Many are experiencing the highest level of housing unaffordability ever, and poverty is almost as high today as it was in the 1970s. In fact, last year alone, credit card debt rose by $143 billion to the highest level on record. While working-class consumers and minorities have limited access to credit, those who do are more likely to carry debt than wealthier consumers, with financial debt burdens increasing at a faster rate and balances lingering for longer periods of time, ultimately paying more in interest.  “This is a sound and common-sense policy that helps address the very issues for which voters elected our officials — working-class and Latino voters rated the economy, in particular cost of living and jobs, as their top concerns. Policymakers should remain focused on bringing solutions that lower costs and raise wages while supporting working-class families across our nation.” 

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