Columbus, OH – Today, the Ohio Credit Union League, the Ohio Bankers League, the Community Bankers Association of Ohio, and the Ohio Chamber of Commerce issued a joint statement in response to a proposed government-imposed cap on interest rates, which would restrict access to credit for Ohioans and lead to unintended consequences for Ohio’s economy.

“While we appreciate elected leaders’ efforts to increase affordability and spur economic growth, government-imposed price controls will unfortunately create more problems than they solve. By imposing a cap on interest rates, the government would force lenders to reduce access to credit, which would curb consumer spending and force many Ohioans to turn to riskier, more costly lending alternatives. Ohioans deserve more economic choice and financial freedom, not less.”

 

According to new data, a 10% cap on credit card interest rates would lead to a drastic reduction in credit for up to 159 million Americans and up to 5.5 million Ohioans. While a proposed interest rate cap may be intended to lower costs for Ohioans, its implementation would in fact have harmful effects on Ohio consumers and the state’s economy, ranging from lower credit limits to higher fees.

 

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