The State - News from Feb. 20, 1986
A bill to put a legal “lid” on department store and bank credit card interest rates in California was introduced by Assemblyman Rusty Areias (D-Los Banos). His proposal would limit maximum finance charges on all credit card accounts to 5% above the 6-month Treasury Bill rate--and would limit yearly membership fees to $18. “Banks and retail stores charge as much as 21% interest . . . ,” while paying as little as 7.5% for their own borrowings, Areias said. He believes the bill could save Californians as much as $500 million a year.
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