A state legislator wants to bar Indiana from doing business with credit card issuers that charge interest rates he considers "unfair" and "exorbitant."

State Sen. Brandt Hershman, a Republican, introduced a bill last week that would prevent the Hoosier State from depositing money in institutions that issue credit cards with rates exceeding 21%. If such an institution already holds state deposits, it would be allowed to keep them until maturity but forbidden to accept any more. The provision would not apply to institutions acting as agents for credit card issuers.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.