Overview
- In a Truth Social post, the president framed the temporary limit as an affordability push and said Americans are being overcharged by card issuers.
- He provided no implementation details, leaving unclear whether companies would comply voluntarily or whether the administration would seek enforcement mechanisms.
- Banking trade groups warned a 10% ceiling would reduce credit access and could push borrowers toward costlier, less regulated lenders, a concern echoed by investor Bill Ackman.
- Lawmakers signaled divergent views, with Sen. Josh Hawley welcoming a vote on a related bill and Sen. Elizabeth Warren saying the call is meaningless without congressional action; similar bipartisan proposals have been introduced but not enacted.
- With average card APRs in the low 20s, the proposed cap would be a large cut, and critics note the administration previously moved to scrap the CFPB’s $8 late-fee cap.