Bill Proposed to Eliminate Credit-card Interest Limit Could Help Huntington
Bill Proposed to Eliminate Credit-card Interest Limit Could Help Huntington
If a bill is passed to eliminate the limit on Ohio’s credit –card interest rates, it would greatly help expand Columbus-based Huntington Bancshares in central Ohio.
There are two small Ohio banks which are in favor of the passage of the bill. This includes the Credit First National Association in Brook Park. The bank issues cards for Firestone Complete Auto care.
Huntington officials are supportive in the passage of this House Bill 322. They believe that the passage of this bill would create more jobs in the Columbus region where 8,100 employees are employed by the bank.
In March, the bill passed the house and is expected to be in the senate early this week. Currently the cap on Ohio’s credit card is 25 percent. If the bill is passed, it would allow Ohio chartered financial institutions to have the same interest and fees charges that out –of – state banks are charging Ohio customers.
The banks based in Ohio are at disadvantage because the banks based in other states could disregard the Ohio’s interest-rate limit. Most banks have no usury limits.
Kenny Mcdonald, the chief economic officer for Columbus 2020, said that the cap on Ohio’s credit card is a big obstacle for job creation. He also believes that the passage of the bill would create job opportunities in addition to the 69,000 jobs the financial-service industry. Similar laws have been passed already in 31 states.
He further said that the passage of the bill would attract more financial services to operate in Ohio if the credit limit is eliminated.
Matthew Samson, the spokesman of Huntington, has no comment as of the moment on the link between the bank’s plan and the passage of the bill. Currently the bank does not offer a credit card but it is working on developing credit cards for both consumers and business customers by mid 2013.
Huntington is committed to expand its business in Ohio. The bank supports the passage of the Bill, Samson said. It will make Ohio attract more investments and become more competitive.
Consumers are not favorable on the proposal but they think that it would create not so much negative impact because majority of credit cards are having no interest limit any more. Credit card experts are doubtful whether the passage of the Bill would create appositive impact in Ohio because other major card issuers have already established themselves in other states.
Senator Jim Hughes, chairman of the Senate Financial Institutions Committee, said that lawmakers would see to it that the bill would apply only to credit –card rates.
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