
Recent legislative changes have introduced a cap on credit card interest rates at 10%. This move aims to address predatory practices by companies like Capital One, which have been criticized for offering low initial interest rates that can skyrocket to as high as 30% due to numerous exceptions. The legislation has sparked mixed reactions, with some expressing reservations about its effectiveness and others questioning the authority to implement such a cap. Additionally, the return of SALT deductions has been noted as another significant development in the past two days. Synchrony, a proxy for sub-consumer credit, reported an NCO of 6.5% in August and a CECL reserve of 10.5%.
So in the last two days we’ve gotten SALT deductions back, and now credit card rates capped at 10% https://t.co/D8zfowTbAY
Synchrony is a good proxy for Sub Consumer Credit NCO was 6.5% in August CECL reserve should be another 4% on top call it 10.5% Already unprofitable before Opex Trump and Elizabeth Warren have a lot more in common than I thought! https://t.co/Fa8KVmpQ2N
Counter Point: Sticking it to predatory and purposely misleading companies like Capital One, who sign people up for 7% interest rates and have 200 exceptions that automatically sky rocket their interest rates to 30% is a good thing. https://t.co/SwS01Xxzih