> At a Glance
> – President Trump wants 10% credit card interest cap
> – Could save Americans $100 billion annually
> – Industry warns of reduced access to credit
> – Why it matters: Could affect 195 million cardholders carrying $1.23 trillion debt
President Trump’s proposal for a 10% credit card interest rate cap could save Americans billions while facing strong opposition from financial institutions.
The Proposal
Trump announced the plan Friday night, aiming for implementation by January 20. The president hasn’t specified whether through executive action or legislation.
Sen. Roger Marshall stated:
> “Lower costs for American families and reign in greedy credit card companies”
Industry Response
Banks argue caps would hurt poor people most, driving them to alternatives like payday loans. The American Bankers Association warned consumers would move to “less regulated, more costly alternatives.”
Current Landscape
Credit card statistics:
- 195 million Americans with credit cards
- $160 billion in interest charges assessed
- $1.23 trillion total credit card debt
- 19.65-21.5% average interest rates
Research Findings
Key data points:
- $100 billion annual savings with 10% cap
- Industry profitable despite rate reduction
- Rewards/perks likely scaled back
- Below 600 credit scores may face reduced access
Legislative Support
Senators Bernie Sanders and Josh Hawley proposed similar 10% caps for five years. Reps. Alexandria Ocasio-Cortez and Anna Paulina Luna introduced comparable legislation.
Key Takeaways
- 10% cap saves Americans $100 billion annually
- Industry warns of reduced credit access for poor
- Current rates significantly higher than decade ago
- Multiple lawmakers supporting similar measures
The proposal faces uphill battle with industry resistance despite potential consumer benefits.
