BUZZ-Credit card rate cap to have limited impact on debt collectors, KBW says
Reuters
Jan 12
BUZZ-Credit card rate cap to have limited impact on debt collectors, KBW says
** Brokerage KBW sees limited impact on debt collectors should U.S. President Donald Trump's proposal to cap credit card interest rates at 10% become effective
** Such a move could push subprime borrowers to access credit in other markets such as unsecured loans and buy now, pay later (BNPL)
** "Since these other markets also create receivables for the debt collection industry, we would expect there to be some offset to potentially slower growth in credit card receivables" - KBW
** Debt collectors such as Jefferson CapitalJCAP.O purchase and manage charged-off and bankruptcy receivables
** Analysts say Trump's proposal would require legislation and has slim odds of passing
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
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