"If this is enacted-and that's a big if, though part of me hopes it is-we would likely see a significant contraction in industry credit card lending. Credit card issuers simply won't be able to sustain profitability at a 10% rate cap,"
"Consumers, however, will still need access to credit. That creates a large void-one that @SoFi personal loans are well positioned to fill."
"Trump called for the cap in a Truth Social post on Friday, writing that his administration would "no longer let the American Public be ripped off by Credit Card Companies" charging interest rates of 20% to 30% or more."
President Donald Trump proposed a one-year 10% cap on credit card interest, saying his administration would no longer let the American public be ripped off by high card rates. Enacting the cap would require congressional approval and details remain limited. SoFi CEO Anthony Noto said the cap could cause a significant contraction in credit card lending, squeeze issuer profitability, and create a large void that personal loans could fill, emphasizing the importance of underwriting discipline and borrower education. Billionaire investor Bill Ackman and banking groups expressed concern, warning of canceled cards and reduced consumer credit access.
Read at Business Insider
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