Overview
- The proposal, announced Friday for a Jan. 20 start, remains a public call with no executive order, legal rationale, or enforcement plan released.
- Financial stocks fell on Monday, with Capital One down more than 6%, Synchrony over 8%, American Express about 4%, Citigroup around 3%, and Visa and Mastercard roughly 2% lower.
- Banking and payments groups warned a 10% ceiling would sharply restrict credit and raise costs, with the Electronic Payments Coalition estimating 82% to 88% of accounts would be closed or constrained, especially for scores below 740, and analysts noting buy now, pay later firms could benefit.
- A Vanderbilt Policy Accelerator study estimated a 10% cap could save consumers about $100 billion a year, though rewards for many borrowers would likely be reduced.
- Bipartisan bills proposing a 10% cap have been introduced in both chambers but have not advanced, leaving prospects before the stated Jan. 20 date uncertain.