Previously Published in The Messenger
Assemblyman Doug Smith (R–Holbrook) slammed Assembly Democrats after they voted to kill his legislation (A.7020) in the Assembly Banks Committee that would have capped credit card interest rates at 10% for personal-use credit cards issued by New York State banking institutions.
“New Yorkers are being crushed under the weight of skyrocketing credit card interest rates—some reaching as high as 30%—while Albany Democrats once again sided with big banks over working families,” said Smith. “At a time when people are struggling to afford groceries, gas, and rent, the idea that anyone would oppose a 10% cap on credit card interest rates is unconscionable.”
Smith’s bill would have amended the Banking Law and General Business Law to cap consumer credit card interest at a maximum of 10% annually— protecting everyday New Yorkers from predatory lending practices and helping them break the cycle of debt. The bill included a five-year sunset provision to allow the legislature to evaluate its impact on consumers and the credit market.
“Albany Democrats talk a big game about economic justice—but when given the chance to actually do something that would offer real relief to working families, they caved to the financial industry,” Smith added.
Smith offered thanks to Assemblyman Pat Burke (D–Buffalo) for being the lone Democrat to stand up for consumers and vote with Republicans against the motion to kill the bill.
“I commend Assemblyman Pat Burke for breaking ranks with his party and doing the right thing for consumers,” said Smith. “At a time when families are drowning in debt, it’s shameful that the rest of the Democrats on the committee chose to shield financial institutions instead of standing up for the people they were elected to represent.”
According to the Federal Reserve, the average credit card interest rate in the U.S. is now over 20%, with many cards exceeding 25% or 30%. These exorbitant rates prevent families from getting ahead and exacerbate the economic inequality many lawmakers claim they want to fix.
“This isn’t radical—it’s reasonable,” concluded Smith. “Prior to the 1980s, caps like this were common sense. It’s time to stop making excuses and start putting New Yorkers ahead of Wall Street.”