Credit Card Regulation and Interest Rate Capping

Resolution Number SAC09.46C

Credit Card Regulation and Interest Rate Capping

WHEREAS, California lacks regulations governing credit card billing cycles, timely notification of changes in credit card terms, and permissible fees and penalties; and is one of only 29 states that does not cap credit card interest rates; and

WHEREAS, changing California’s credit card usury laws to cap interest rates and set payment and fee guidelines may increase the use of California banks and lending institutions by consumers; and

WHEREAS, unregulated credit card usury provides the greatest hardships to working families and other vulnerable citizens;

THEREFORE BE IT RESOLVED, that the California Democratic Party supports the establishment of an 18% interest rate cap for credit cards issued by California banks and lending institutions; regulatory statutes to set reasonable limits on fees and penalties; guidelines for billing cycles; and requirements for timely notification of changes to interest rates, minimum payments and billing cycles; and

BE IT FURTHER RESOLVED, that the California Democratic Party will communicate this position to all Democratic State Legislators and request that they create or sponsor appropriate legislation to revise the California usury laws.

Submitted by Craig J. Beauchamp (Author)
Democratic Party of Orange County, Central Committee; 68 AD PAC,
Harvey Milk Stonewall Democrats of Orange County, Patrick Henry Democratic Club (Partial List)

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Adopted by the Democratic State Central Committee of California
AKA "California Democratic Party"
At its Annual State Convention
Sacramento Convention Center
April 26, 2009

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