America’s Credit Unions estimates that 47 million “subprime” borrowers (effectively one-third of consumers) would be cut off from credit cards under Trump’s proposed 10% interest rate cap.

Maybe that’s a wild exaggeration, but even if the number turns out to be half that high, at least 20 million people – most of them with low incomes and with credit scores below 700 – are at risk of losing the plastic card in their wallet.  And that’s just the credit unions.

Many will rush to payday lenders for emergency loans – and we are strongly supportive of the PayDay industry.

Ironically enough, Senator Elizabeth Warren, who sold Trump the idea of credit card interest caps, also wants to shut down payday lenders.

So now, where will those denied credit cards go to pay their bills? Will they write overdraft checks and pay even bigger penalties?

Many of those in financial straits will go to an old-fashioned alternative: loan sharks.

Ironically, Senator Warren complains that credit card companies with their interest rates on late payments that average 22% are acting like loan sharks.

Not exactly. If you don’t pay back a loan shark on time, you don’t get hit with a 22% interest rate, you get hit in the leg or over the head with a tire iron.