""When it comes to credit cards, the administration has sided with the industry on almost every major issue," Rohit Chopra, who ran the Consumer Financial Protection Bureau under President Biden, tells Axios. Catch up quick: Trump promised an interest-rate cap during his 2024 campaign. After Sen. Bernie Sanders (I-Vt.) noted that on X last Friday, Trump took to Truth Social to say he'd do it, effective Jan. 20."
"Such a change would require legislation that's unlikely to pass. Still, banking lobbyists and investors freaked out. Last year, Sanders and Sen. Josh Hawley (R-Mo.) proposed a bill to cap rates -that's gone nowhere on the Hill. The latest: Sen. Elizabeth Warren (D-Mass.) said she told Trump in a call on Monday that a bill could pass if he'd back it."
Donald Trump promised an interest-rate cap on credit cards, saying it would take effect Jan. 20. Such a cap would require new legislation that is unlikely to pass. A 10% cap could save Americans about $100 billion but would likely reduce rewards and lending. A 15% cap could save roughly $48 billion while allowing rewards and lending to hold steadier. About half of credit card revenue comes from interchange fees rather than interest. Credit card APRs have surged, averaging 25.2% in 2024 and reaching higher levels on certain accounts. Banking lobbyists and investors reacted strongly to the proposal.
Read at Axios
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