Overview
- The president called for a one-year cap on credit card APRs at 10% starting January 20, 2026, and warned noncompliant lenders could be "in violation of the law," though enforcement details were not specified.
- Bank, issuer, and network stocks fell following the announcement, with declines reported for JPMorgan, Citigroup, Bank of America, Capital One, Visa, and Mastercard.
- Major bank trade groups argued a cap would sharply reduce credit availability and raise costs through higher fees and reduced rewards, and the Electronic Payments Coalition estimated 82% to 88% of open accounts—largely below a 740 credit score—would be closed or restricted.
- A Vanderbilt Policy Accelerator study projected roughly $100 billion in annual consumer savings under a 10% cap, as analysts also predicted issuers would tighten lending and that buy-now-pay-later and alternative lenders could gain share.
- Experts and market analysts said a presidential order cannot unilaterally impose the cap, and Sen. Elizabeth Warren said she told Trump Congress can pass such legislation if he actively fights for it, with legal challenges expected if agencies attempt to enforce a limit without new law.