Which would effectively be a ban on giving unsecured credit cards with substantial limits to anyone at substantial risk of not paying it back or require other draconian fees and changes to compensate, and lord help us if actual interest rates ever approached 10%.
Basically, when looking what happens in Europe where there are more limits on credit cards, it means that people are pushed to use pre-paid credit cards instead of debit cards when they are in a bad financial situation. Then if anyone actually needs to burrow money, they have to borrow it explicitly via a conscious decisions instead of it happening automatically.
It likely also results in credit cards not having cash-back programs, because that’s what we see in the Europe compared to the United States as well.
Basically, when looking what happens in Europe where there are more limits on credit cards, it means that people are pushed to use pre-paid credit cards instead of debit cards when they are in a bad financial situation. Then if anyone actually needs to burrow money, they have to borrow it explicitly via a conscious decisions instead of it happening automatically.
It likely also results in credit cards not having cash-back programs, because that’s what we see in the Europe compared to the United States as well.