Placing Consumers at the Front of the Relief Effort: Redirecting Credit Card Interest Charges

4 Pages Posted: 6 Apr 2020 Last revised: 21 May 2020

See all articles by Norman I. Silber

Norman I. Silber

Hofstra University School of Law; Yale University - Law School

Jeff Sovern

St. John's University - School of Law

Date Written: April 5, 2020

Abstract

Catastrophes including the COVID19 pandemic of 2019-2020 impose great financial stress on consumers. This op-ed proposes the distribution of economic relief directly to consumers by authorizing credit card issuers to bill Congress for portions of the interest that otherwise would be charged to cardholders. Significant benefits include expanding access to consumer credit when it otherwise would be expected to diminish, reduced consumer default rates and bank charge-offs, and greater stimulus to overall economic welfare.

Keywords: credit card, COVID, coronavirus, interest charges, banks, financial institutions

JEL Classification: K1, K2, K4, I3, O2, O4

Suggested Citation

Silber, Norman I. and Sovern, Jeff, Placing Consumers at the Front of the Relief Effort: Redirecting Credit Card Interest Charges (April 5, 2020). Hofstra Univ. Legal Studies Research Paper No. 2020-04, Available at SSRN: https://ssrn.com/abstract=3569002 or http://dx.doi.org/10.2139/ssrn.3569002

Norman I. Silber (Contact Author)

Hofstra University School of Law ( email )

121 Hofstra University
Hempstead, NY 11549
United States
516 463 5866 (Phone)
516 463 4962 (Fax)

Yale University - Law School

P.O. Box 208215
New Haven, CT 06520-8215
United States

Jeff Sovern

St. John's University - School of Law ( email )

8000 Utopia Parkway
Jamaica, NY 11439
United States
718-990-6429 (Phone)

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