Day: May 9, 2019

The Sanders, AOC credit card interest cap will only hurt consumers

Yaël Ossowski
Deputy Director
Consumer Choice Center

The Sanders, AOC credit card interest cap will only hurt consumers

Washington, D.C. – 
Today, Sen. Bernie Sanders and U.S. Rep. Alexandria Ocasio-Cortez are introducing legislation in their respective chambers to put a cap on credit card interest rates.

Yaël Ossowski, Deputy Director of the Consumer Choice Center (CCC), said “This measure to cap credit card interest rates may be well-intended, but it will ultimately end up hurting low-income Americans who need access to credit most desperately.”

“By placing a cap on credit card interest rates, borrowers who would otherwise use credit cards to pay bills and buy groceries for their families will be the first ones forced out of the credit system,” said Ossowski.

“The people who need access and who depend on credit cards to cover large transactions between paychecks are usually those who cannot otherwise gain access to credit and loans from banking institutions. If a cap on rates is passed, these borrowers will be pushed out of the credit card market and will be forced to take out loans at exorbitant rates by other, possibly illegal, means.

“Thankfully, there are legions of credit cards and credit unions that can offer low or zero interest rates to consumers as introductory offers. Mandating a cap would mean these offers would virtually disappear, making it even harder for the less well-off to afford to pay bills.

“At the same time, extending the U.S. Postal Service’s mandate to become a bank is just inviting trouble, especially for a government service that can barely make a profit as it is. It is wishful thinking to suggest that politicians in Washington will be the ones to revolutionize banking for everyday Americans.

“Reducing credit card interest rates for ordinary consumers is a noble goal, but a federal cap will do more to harm consumers than good, especially the people that depend on these cards to cover their week-to-week expenses,” said Ossowski.

***CCC Deputy Director Yaël Ossowski is available to speak with accredited media on consumer regulations and consumer choice issues. Please send media inquiries HERE.***

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

Report: Health Canada’s Cannabis Rule Changes Will Hurt Consumers – Building Must Be In Place Before Application

Toronto – On Wednesday, Health Canada announced that it will make significant changes to the process for approving licensed cannabis producers. Specifically, Health Canada will now require all new producer applicants to have a fully built and compliant site at the time of their application. Health Canada has justified the move by citing that a majority of applications in the current process undergo review, but have not yet provided evidence that they have a fully built and compliant production site.

The fear is that red tape and a major initial financial output would be too much for business owners.

David Clement, Toronto based North American Affairs Manager of the Consumer Choice Center (CCC), said “This move is a significant blow for Canada’s cannabis market, especially cannabis consumers nationwide.

“The process to qualify as a licensed producer is already incredibly rigid. These changes will simply make it harder for new producers to enter the market, which ultimately ends up hurting recreational consumers and medical patients. More red tape will translate into higher prices for consumers, and less product availability. Higher prices and poor access will encourage consumers to continue to purchase in the black market, which runs directly against the Federal Government’s stated goal for legalization,” said Clement.

“If Health Canada has an issue with the amount of pre-approved producers who end up grow-ready, then they should simply liberalise the regulations on the production side to make it easier for producers to go from paper review to fully operational. Rather than take this approach, the government has doubled down on bureaucracy and red tape, which harms everyone involved,” said Clement.

Read more here

Ontario reveals housing supply action plan

With a focus on making it easier to build (and afford) a wider variety of housing, the action plan is being called a win for consumer choice. Heather Bone, a Toronto-based Research Fellow for the Consumer Choice Center (CCC) and Economics Ph.D. Student at the University of Toronto, said: “It is good to see the province is doing its part to reduce the red tape that makes it so difficult for developers to build.”

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