Trump pushes a 1-year, 10% cap on credit card interest rates and banks balk

"Reviving a campaign pledge, President Donald Trump wants a one-year, 10% cap on credit card interest rates, a move that could save Americans tens of billions of dollars but drew immediate opposition from an industry that has been in his corner. Trump was not clear in his social media post Friday night whether a cap might take effect through executive action or legislation, though one Republican senator said he had spoken with the president and would work on a bill with his full support."

"Banks are making the argument that such a plan would most hurt poor people, at a time of economic concern, by curtailing or eliminating credit lines, driving them to high-cost alternatives like payday loans or pawnshops. We will no longer let the American Public be ripped off by Credit Card Companies that are charging Interest Rates of 20 to 30%, Trump wrote on his Truth Social platform."

President Donald Trump proposes a one-year, 10% cap on credit card interest rates, with uncertainty over whether the limit would be imposed by executive action or legislation. A Republican senator said he spoke with the president and would work on a bill with full support. Trump expressed hope the cap would take effect Jan. 20. Strong opposition is expected from Wall Street and credit card companies that supported his 2024 campaign. Banks argue the cap would hurt low-income consumers by curtailing credit lines and pushing them toward high-cost alternatives like payday loans or pawnshops. Researchers estimate roughly $100 billion in annual interest savings, while the industry would likely remain profitable but scale back rewards. About 195 million Americans had credit cards in 2024 and were charged $160 billion in interest, with total card debt about $1.23 trillion.

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