Overview
- President Trump demanded a one-year ceiling of 10% on credit-card APRs starting January 20 and warned issuers they would be breaking the law if they did not comply.
- Executives from JPMorgan, Citigroup, Bank of America, and Wells Fargo said a cap would cut off credit for many borrowers and damage the economy, with JPMorgan signaling possible legal action and issuers considering account closures.
- There is no clear unilateral authority to enforce the policy, and House Republican leaders, including Speaker Mike Johnson, have voiced skepticism as industry groups warn of reduced credit availability.
- Card-focused and bank stocks fell after the proposal, with Capital One dropping nearly 7% and store-card issuers like Synchrony and Bread also sliding as analysts flagged pressure on card economics and rewards.
- Bilt Rewards introduced three cards offering a 10% APR for new purchases during the first year, a voluntary move that reverts to rates above 26% after 12 months.