Felix Shipkevich was recently featured in The Independent discussing the legal and consumer implications of a proposed 10% cap on credit card interest rates. The article examined the challenges such a policy could face and the broader impact it could have on the financial system.
Shipkevich noted that while a rate cap is possible, the most durable path would be through Congress, explaining that federal legislation provides clear authority to regulate credit card pricing. He also cautioned that attempts to impose a cap through executive action would likely trigger immediate legal challenges over statutory authority and administrative law.
He further explained that if issuers are forced to lower interest rates, they would likely shift to other revenue sources such as annual fees, account fees, reduced rewards programs, and tighter credit limits. According to Shipkevich, these changes could ultimately reduce credit availability and reshape how lenders manage risk.
Read the full article here:
https://www.independent.co.uk/us/money/credit-card-interest-cap-legal-consumer-impact-b2899119.html