Bill to Reduce Credit Card Interest Rate Cap to 12.5% Voted Down in Colorado
A move to cap the interest rate on credit cards at 12.5% in Colorado was soundly defeated on Monday. The current cap is at 21%.
The vote in the Republican-controlled Senate Business, Labor and Technology Committee was 6-1 against the bill.
Senate Bill 15-034 would have limited the interest rate that Colorado banks could charge cardholders, not national banks which could still charge a 21% rate.
“It only affects 2% (of banks in the state), and those are the Colorado-chartered banks that are trying to do the right thing, and those are the people who might be able to help the people struggling,” Democratic Senator Linda Newell told the Durango Herald.
The bill was sponsored by Democratic state senator Jessie Ulibarri.
“People are going further and further in debt because of incredibly high interest rates,” Ulibarri told the Associated Press.