While they said they support efforts to make credit more affordable, the groups warned that such a low interest ceiling could significantly reduce access to credit. They argued that millions of families and small business owners who rely on credit cards could be negatively affected.
According to these organizations, banks might respond by tightening lending requirements, which would make it harder for people with lower credit scores or limited financial history to qualify for credit cards. They also warned that consumers could be pushed toward less regulated, higher-cost alternatives if traditional credit becomes harder to access.
