Federal lawmakers are gearing up to impose a cap on credit card interest rates.
In a post on Truth Social, U.S. President Donald Trump called for a one year cap on credit card interest rates of 10%, starting January 20.
“Please be informed that we will no longer let the American Public be “ripped off” by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more,” Trump wrote on Truth Social.
U.S. Sen Roger Marshall (R-KS), who had cosponsored the Credit Card Competition Act with Sen. Dick Durbin (D-IL), is working on legislation in line with Trump’s directive to cap interest rates.
“Just got off the phone with President @realDonaldTrump, and with his full support, we will be leading this legislation to lower costs for American families and to reign in greedy credit card companies who have been ripping off hardworking Americans for too long,” Marshall wrote in a post on X.
The plan drew immediate reaction from banking industry groups, including the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum and Independent Community Bankers of America, which issued a joint statement.
“We share the President’s goal of helping Americans access more affordable credit,” the groups said in a statement. “At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small businesses who rely on and value their credit cards, the very consumers this proposal intends to help. If enacted, this cap would only drive consumers toward less regulated, more costly alternatives. We look forward to working with the administration to ensure Americans have access to the credit they need.”
The Credit Card Competition Act, which was first introduced in 2023, is designed to increase competition in the credit card interest, lower swipe fees for merchants, and lower prices for consumers. It has yet to pass in Congress.