Overview
- Senior congressional leaders signaled the proposal is likely dead on arrival, leaving no clear legislative path for a nationwide cap.
- The White House has not outlined a legal mechanism to enforce a January 20 start, and any voluntary approach would require broad issuer participation.
- Executives from Citigroup, Bank of America, and JPMorgan warned a strict cap would curb credit availability and reduce rewards, with Citi’s CFO calling the economic impact deleterious.
- Research cited by reform advocates estimates about $100 billion in annual consumer interest savings, offset by roughly $27 billion less in rewards for many borrowers.
- Average credit-card APRs are about 19.64%, with New York Fed data showing single-digit rates for top FICO borrowers and above 20% for the 600s, alongside much higher charge-off rates for lower scores.