Bernie Sanders and Alexandria Ocasio-Cortez’s interest-rate cap could be the death knell for credit-card rewards programs

Bernie Sanders and Alexandria Ocasio-Cortez want to cap interest rates on credit cards and other loans at 15%. But such a plan wouldn’t just hurt banks — it could also have major consequences for consumers.

Sanders, an independent senator from Vermont, and Ocasio-Cortez, a Democratic representative from New York, plan to introduce legislation they have dubbed the “Loan Shark Prevention Act.” The bill would establish, among other things, a 15% cap on credit-card interest rates and allow states to create lower limits. Currently, the average credit-card interest rate is at a record high of 17.73%, according to data from CreditCards.com.

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