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By Mark Huffman Consumer News: Can President Trump really cap credit card interest rates at 10%? of ConsumerAffairs
January 20, 2026
  • Trump cant cap credit card interest rates on his own: Under the Constitution, only Congress can regulate interest rates.

  • High rates reflect riskbut defaults remain relatively low: Average credit card APRs exceed 20%, which banks say offsets the risk of unsecured lending.

  • A rate cap could limit access to credit: Banks warn that a 10% cap would make lending to higher-risk borrowers unprofitable, likely leading to fewer approvals, lower credit limits, and account closures.


President Trump says credit card interest rates are too high and wants to cap them at 10%. But the president who has gotten things done with executive orders will have to go through Congress to achieve this goal.

The U.S. Constitution gives Congress the power to write laws regulating commerce and financial markets including interest-rate limits on credit cards. Trump has called for a one-year cap at 10%, but no such law currently exists, and a presidential proclamation alone doesnt change private-sector interest rates.

A bill has been introduced in both the House and Senate with bipartisan support to impose the cap, but neither has moved out of committee yet, meaning they havent been submitted for votes.

Banks have made it clear that they strongly oppose a cap, and even if such a bill is passed and signed into law, banks and industry groups could still challenge it in court, arguing limits on interest rates interfere with contracts and financial markets.

So, for there to be a cap on credit card interest rates, heres what has to happen:

  1. Congress drafts, debates, and passes a law capping credit card interest rates.

  2. The President signs that law.

  3. The law withstands legal challenges in federal courts.

Until then, Trumps proposal is effectively a policy objective, not a binding rate cap.

Are rates really too high?

On the face of it, the answer seems obvious. However, banks point out that an average rate of north of 20% protects them from credit card users who default. There is no collateral to seize in case of non-payment.

But how common is credit card default? Federal Reserve data from the third quarter of 2025 show the credit card delinquency rate (30+ days past due) is around 3% of outstanding balances. Delinquency rates have risen from the unusually low pandemic levels, but are not extremely high historically.

The charge-off (default) rate deeper than standard delinquency is around 3.9% of credit card debt (Q3 2025) based on Federal Reserve figures, meaning lenders have recognized nearly 4% of balances as losses.

Personal loans are also unsecured but usually have lower interest rates than credit cards. The rate on a personal loan might be as low as 12%, not much higher than Trumps proposed cap.

Unintended consequences

Banks say a cap on credit card interest rates would result in reduced access to credit for higher-risk consumers. The banking industry warns:

  • Many subprime and near-prime borrowers are only profitable to lenders at rates well above 10%.

  • Banks would likely respond by:

    • Denying more applications

    • Lowering credit limits

    • Closing inactive or marginal accounts

This mirrors what happened after state-level usury caps and after the Military Lending Act capped rates for service members.

According to banks, credit becomes cheaper but harder to get. Consumers with good or excellent credit would benefit, especially if they carry a balance. Consumers with questionable credit might have trouble qualifying for a credit card.




Posted: 2026-01-20 11:48:09

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Consumer News: More than 13,000 pounds of chicken recalled
Tue, 20 Jan 2026 14:07:07 +0000

The ready-to-eat product tested positive for Listeria monocytogenes

By Mark Huffman of ConsumerAffairs
January 20, 2026
  • Suzannas Kitchen is recalling nearly 13,720 pounds of ready-to-eat grilled chicken products after potential contamination with Listeria monocytogenes, according to federal officials.

  • The recalled chicken was produced on Oct. 14, 2025, and distributed to foodservice locations in eight states.

  • No illnesses have been reported, but consumers and foodservice operators are urged not to use the product.


Suzannas Kitchen is recalling approximately 13,720 pounds of ready-to-eat grilled chicken breast fillet products that may be contaminated with Listeria monocytogenes. The product was distributed in seven states.

The recall involves fully cooked grilled chicken breast fillets with rib meat produced on Oct. 14, 2025. The affected product was shipped in 10-pound cases containing two 5-pound bags. The cases and packages bear lot code 60104 P1382 287 5 J14 and establishment number P-1382 inside the USDA mark of inspection.

According to the Food Safety and Inspection Service, the recalled chicken was distributed to foodservice distribution centers in Alabama, Florida, Georgia, Missouri, New Hampshire, North Carolina, and Ohio. The FSIS categorized the recall as Class I the highest threat level.

Third-party lab test

The issue was identified after a third-party laboratory test returned a positive result for Listeria monocytogenes in a sample of the ready-to-eat product. FSIS noted that no confirmed illnesses have been linked to the recalled chicken to date.

Listeria monocytogenes is a potentially serious foodborne pathogen that can cause severe infections, particularly in older adults, pregnant women, newborns, and people with weakened immune systems. FSIS advises foodservice operators and distributors to stop using the affected product and ensure it is properly disposed of or returned.

Consumers who believe they may have become ill after consuming the recalled product should contact a healthcare provider.

What to do

Questions about the recall can be directed to Dawn Duncan, Customer Service Director at Suzannas Kitchen, via email at dduncan@suzannaskitchen.com.

For general food safety questions, consumers may contact the USDA Meat and Poultry Hotline at 888-674-6854. Complaints related to meat, poultry, or egg products can also be submitted through the USDAs Electronic Consumer Complaint Monitoring System, available 24 hours a day.


Read More ...


Consumer News: Education Department delays aggressive student loan collections
Tue, 20 Jan 2026 02:07:06 +0000

Advocates say current rules are outdated and unrealistic

By James R. Hood of ConsumerAffairs
January 20, 2026

  • The U.S. Department of Education will delay plans to seize tax refunds and garnish wages from struggling student loan borrowers

  • Consumer advocates say current collection rules are outdated and risk pushing families and seniors into poverty

  • The pause renews calls for reforms to reflect todays cost of living


The U.S. Department of Education has announcedthat it will delay plans to resume aggressive debt collection against student loan borrowers who have fallen behind on their payments, including seizing tax refunds and garnishing wages.

The move offers temporary relief to millions of borrowers still struggling with rising living costs after years of pandemic-era payment pauses and policy changes.

Todays announcement throws a lifeline to working and middle class families who are buckling under the weight of outdated student loan policies that dont reflect todays high cost of living and affordability crisis, said Abby Shafroth, managing director of advocacy at the National Consumer Law Center.

Advocates warn collection rules are decades out of date

Consumer advocates say the departments existing collection policies were set decades ago and have not kept pace with inflation or housing, food, and health care costs.

Under current rules, the Department of Education protects only the first $217.50 per week in wages from garnishment a threshold set in 2009. According to advocates, the buying power of that amount has fallen by more than 30% since then and now sits well below the federal poverty line.

Similarly, the department protects just $750 per month in Social Security benefits from seizure, a figure established in 1996. Today, that amount is less than 60% of the poverty line, putting older borrowers at particular risk.

Without changes, advocates warn that restarting collections largely paused since 2020 could push working families and retirees into poverty.

Calls grow for broader reforms before collections resume

Shafroth said the delay should be followed by structural changes to how the federal government collects student loan debt.

The Department of Educations current collection policies are outdated and can trap people already struggling to keep up with rising costs deeper in debt and even push them into poverty, she said. Thats the opposite of what our financial aid policies are supposed to do.

Consumer advocates are urging the administration to increase the amount of income protected for basic living expenses, shield anti-poverty benefits such as Social Security and the Earned Income Tax Credit from seizure, and cap collections at the amount borrowers are actually behind on payments.

They are also calling for simpler pathways for borrowers who fall behind to enroll in repayment plans or other options that help them manage their loans successfully.

For now, the departments decision delays the resumption of some of the governments most punitive collection tools but advocates say long-term relief will depend on whether those tools are reformed before they are turned back on.


Read More ...


Consumer News: California orders xAI's Grok to halt alleged deepfake abuse
Tue, 20 Jan 2026 02:07:06 +0000

Deepfake sexual images and child sexual abuse material alleged

By Truman Lewis of ConsumerAffairs
January 20, 2026

  • California Attorney General Rob Bonta has sent xAI a cease and desist letter over alleged creation and distribution of deepfake sexual images

  • The letter targets nonconsensual intimate images and child sexual abuse material tied to xAIs Grok AI model

  • The state is demanding immediate action and a response from xAI within five days


California Attorney General Rob Bonta has ordered Elon Muskfounded artificial intelligence company xAI to immediately stop the creation and distribution of deepfake sexual images, including child sexual abuse material, warning that the practices may violate multiple California criminal and civil laws.

The cease and desist letter follows an investigation announced earlier this week into reports that Grok, xAIs AI image-generation model, has been used to create nonconsensual, sexually explicit images of women and children that are being circulated widely online, including on the social media platform X.

The avalanche of reports detailing this material at times depicting women and children engaged in sexual activity is shocking and, as my office has determined, potentially illegal, Bonta said in a statement.

State alleges widespread nonconsensual image creation

According to the California Department of Justice, Grok users have been taking publicly available images of women and children and using the tool to generate sexually explicit or suggestive images without the subjects consent. Some reports describe the images as undressing individuals or placing them into fabricated sexual scenarios.

Bontas office alleges that xAIs technology is facilitating large-scale harassment, particularly of women and girls, through the mass production of these images.

The letter specifically demands that xAI stop creating, disclosing, or publishing any digitized sexually explicit material depicting individuals who did not consent or who were minors at the time the material was created.

It also orders the company to cease aiding or facilitating the creation or distribution of any image including AI-generated or digitally altered content that depicts or appears to depict a person under 18 engaging in sexual conduct.

Spicy mode cited as contributing factor

In the background section of the letter, the attorney generals office points to Groks image-generation features, including what xAI has publicly referred to as a spicy mode, which allows users to generate explicit content.

State officials say the feature has been promoted as a marketing tool and has contributed to the proliferation of nonconsensual sexual imagery.

Grok-generated images have reportedly been used to target both public figures and private individuals. Most concerning, officials say, are reports that the tool has been used to alter images of children to depict them in sexualized contexts, including photorealistic images of minors engaged in sexual activity.

According to one analysis cited by the state, more than half of the roughly 20,000 images generated by xAI between Christmas and New Years depicted people in minimal clothing, with some images appearing to involve children.

Possible violations of California law

Bontas letter states that the alleged conduct may violate several California laws, including statutes governing child sexual abuse material, nonconsensual intimate imagery, and unfair business practices.

The attorney general is demanding that xAI confirm within five days what steps it is taking to address the issues outlined in the letter.

The creation of this material is illegal, Bonta said. California has zero tolerance for child sexual abuse material.

xAI has not publicly responded to the cease and desist letter as of publication.


Read More ...


Consumer News: Auto Safety Recall Derby – Week of Jan. 19, 2026
Mon, 19 Jan 2026 23:07:08 +0000

Electrical failures in emergency vehicles top the week's recall list

By News Desk of ConsumerAffairs
January 19, 2026

Ambulances in the Spotlight

Electrical failures in emergency vehicles lead a light but serious recall week, with trailers and luxury SUVs also affected.

Each week, new NHTSA recall notices roll in. While this was a smaller batch overall, the safety stakes remain high especially when emergency vehicles are involved.

Grabber Recall of the Week

Braun Ambulances Multiple Models (20212026)
Electrical systems may fail, potentially affecting vehicle operation and onboard emergency equipment a serious safety risk for patients and first responders. ( NHTSA Recall 25V914 )

Other Notable Mentions

  • Weight Matters: Land Rover recalled the 2026 Range Rover Sport due to incorrect weight information on the certification label. (26V005)
  • Rear Guard Detachment Risk: East Trailers recalled Beast and Beast II models after discovering faulty welds that could allow the rear impact guard to detach, increasing crash severity risk. (26V007)

This Weeks Tally

  • Electrical system failures: 1 recall
  • Emergency & commercial vehicles: 2 recalls
  • Labeling / compliance issues: 1 recall
  • Trailer structural defects: 1 recall

Full Recall Roundup

Electrical System Failures

  • Braun Chief XL, Express, Liberty, Super Chief Ambulances (202126): Electrical systems may fail loss of critical vehicle and medical functions (25V914)

Labeling & Weight Compliance

  • Land Rover Range Rover Sport (2026): Incorrect weight information on label FMVSS compliance issue (26V005)

Trailers & Impact Protection

  • East Beast, Beast II Trailers (202426): Incorrect weld may cause rear impact guard to detach FMVSS 223/224 noncompliance (26V007)

Recall Leaderboard (Year-to-Date)

         Ford (6)
    BMW (4)      Volkswagen Group (4)
    Contenders: Volvo (3), Hyundai (2), Bentley (2), Blue Bird (2), Braun (1)
      

New debut: Braun Industries joins the Recall Derby this week with a high-impact safety issue involving emergency vehicles.

Takeaway

Even in a quieter recall week, the consequences can be severe. Electrical failures in ambulances raise serious concerns about reliability when lives are on the line, while trailer weld failures and labeling errors highlight how small defects can have outsized safety impacts.

To check whether your vehicle is affected, visit the NHTSA Recall Look-Up Tool .


Read More ...


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