Lower regulatory burdens needed, not price controls
Affordability is a top concern for credit union members, and credit unions continue to work creatively and directly with members on solutions. Ohio Credit Union League President Paul Mercer wrote in The Columbus Dispatch Wednesday that a credit cap interest rate cap is not the solution.
Rather, government price control will limit lenders’ ability to extend credit, forcing consumers to seek less-regulated, higher-cost alternatives.
“In fact, Ohio credit unions already take pride in the lower rates and fees they offer to members, including lower credit card interest rates. Capping interest rates on credit cards would create more problems than it would solve,” Mercer wrote, adding, “we would encourage the government to take steps to lower regulatory burdens on lenders like credit unions and invest in financial literacy and budgeting efforts championed by credit unions to better help Ohioans make ends meet.”
Mercer thanked the administration for its focus on affordability, and Mercer noted credit unions “stand ready to work with our elected leaders on solutions that will make a meaningful difference in the lives of our members, helping them achieve greater financial security and contribute to Ohio’s economic growth.”