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Originally Posted by Matty81
I think you're definately right in assuming credit cards will not be as common. Any bill legislating maximum interest rates is surely going to have some laws around other fees to circumvent workarounds though.
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Yeah, but you can't force banks to lend money to people. The thing about governments and the economy is that a government cannot mandate the economy to improve, but rather only attempt to create winning conditions for improvement. The opposite is that they can certainly mandate the economy into ruins with restrictive laws.
If the NDP were to implement this, and then legislate charge out rates with businesses, and then legislate that they cannot drop credit limits of existing customers, then the banks will simply stop taking on new clients and all of the bad things I mentioned would still happen. You can't force people into economic activity, but you can certainly provide incentive for people to shy away from it.