Senate Talks Affordability
This week the Senate Committee on Banking hosted a hearing to examine “The Affordability Agenda.” Although the hearing split quickly along partisan lines over causes and solutions to rising consumer costs, Chairman Tim Scott (R-SC) emphasized the need to preserve consumer affordability while ensuring that financial institutions are not unfairly targeted by federal agencies, noting, “Reckless spending and heavy-handed regulation made life more expensive and made it harder for businesses to invest, lenders to serve their communities, and builders to build. We should be clear. Regulations, they have a cost.”
Much of the hearing focused on the ongoing debate about implementing interest rate caps. Senator Thom Tillis (R-NC) challenged witnesses to provide an example of where rate caps have “worked successfully,” while Senator Mike Rounds (R-SD) cited expert witness testimony that a 10% cap would restrict credit for “75 to 80% of the current market.”
Earlier this year, AFSA opposed Senate legislation to cap credit card interest rates at 10%, citing Federal Reserve Bank of New York research showing that such a cap restricts credit and has the opposite effect of addressing affordability issues for consumers.
AFSA continues to work with the Senate Banking Committee to address economic concerns and promote the benefits of access to safe and affordable credit for millions of consumers.
June 26th, 2026
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