The Federal Reserve Board opposed pending legislation to establish ceilings on interest charged by credit card companies. The Board does not believe it would be appropriate to impose a federal ceiling on credit card rates Fed governor Martha Seger told a Senate Banking Subcommittee. Among other things a Federal ceiling could have undesirable side effects in the form of reduced credit availability and could lead to changes in non-rate credit card terms she testified.
FED OPPOSES CREDIT CARD INTEREST RATE CEILINGS