Bipartisan Bill Proposes 10% Cap on Credit Card Interest Rates

Senators Bernie Sanders and Josh Hawley introduce legislation aimed at reducing financial strain on American consumers, but critics warn of potential consequences.

The proposed bill, backed by Senators Sanders and Hawley, seeks to cap credit card interest rates at 10% for five years, fulfilling a campaign promise made by President Donald Trump in 2024.
Supporters argue the cap could alleviate financial burdens for working-class families, as U.S. credit card debt reached $1.17 trillion in late 2024, with average interest rates exceeding 20%.
Critics, including financial institutions and analysts, warn that the cap could restrict credit access for higher-risk borrowers, forcing them toward costlier and less regulated lending options.
Industry groups and experts highlight potential unintended consequences, such as reduced credit availability, higher fees, and diminished credit card rewards for consumers.
The bill's passage depends on Congressional approval, with ongoing debate over its economic impact and potential bipartisan support.