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3d ago

Trump's 10% Credit-Card Rate Push Faces Firm Industry Opposition and Long Odds

Legal authority rests with Congress, limiting immediate action.

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U.S. president Donald Trump has called for credit card interest rates to be capped at 10 per cent — a move that could bring short-term relief to some consumers but is likely to cause a broader credit crisis in the long run, according to experts.

Overview

  • After his Jan. 20 target passed without broad compliance, the president continued urging lawmakers to enact a one-year 10% ceiling on card APRs.
  • Warnings from lenders escalated, with SoFi’s Anthony Noto predicting a contraction in card lending and JPMorgan’s Jamie Dimon labeling the proposal an “economic disaster.”
  • Synchrony said retailer-run card programs would be hit hard, noting retail card APRs average about 30%, which many merchants depend on to drive sales.
  • Policy analysts put the odds of passage at roughly 10% to 15%, and CNBC reported Bank of America is only considering a limited 10% product rather than committing to a rollout.
  • Consumers can seek relief now by asking issuers for lower rates, using 0% balance-transfer offers, or entering nonprofit counseling; a LendingTree survey found about three-fourths who asked for a cut got an average six-point reduction.