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Deadline Passes on Trump’s 10% Credit-Card Cap as Warnings Mount

Experts warn of tighter lending with potential payment shocks for borrowers.

Overview

  • Trump proposed a one-year 10% ceiling on credit-card APRs for Jan. 20, but no major issuer adopted the cap by that date.
  • JPMorgan’s CFO cautioned that many borrowers would lose access to credit, and CEO Jamie Dimon floated a pilot cap in Massachusetts and Vermont.
  • A fintech executive warned a temporary cap could spur higher balances during the low-rate period and trigger a payment shock when rates reset.
  • Industry groups predict widespread fallout, with one estimate saying up to 190 million Americans could lose card access under a 10% limit.
  • Commentary highlights a concentrated market dominated by a few banks and the Visa-Mastercard duopoly, noting Trump’s support for the Credit Card Competition Act to expand routing options.