Trump says he will temporarily cap credit card rates

[lightbright]

This mofo is DESPERATELY trying to be loved.....

President Donald Trump exits Marine One before boarding Air Force One at Joint Base Andrews, Md., Friday, Jan. 9, 2026.


President Donald Trump on Friday announced that he would put a temporary cap on credit card interest rates with a limit of 10 percent, in line with an idea he floated on the campaign trail.

“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 percent,” Trump said in a social media post.

He said there would be a one-year cap on credit card rates as of Jan. 20.

It is unclear what authority the president could use to impose such a cap without authorization by Congress.

Legislation sponsored by Sen. Bernie Sanders (I-Vt.) and cosponsored by Sen. Josh Hawley (R-Mo.) would impose a 10 percent cap on credit card rates for five years. Similar legislation has been introduced in the House.

The primary regulator with jurisdiction over credit card practices is the Consumer Financial Protection Bureau, an agency that the administration has suggested should not exist and has slashed funding for. Acting Director Russell Vought requested funds for the agency on Friday.

The average annual percentage rate charged on credit card accounts was 22.3 percent as of November, according to Federal Reserve data, up from 12.9 percent in late 2013.

The policy is the latest in a string of announcements this week by Trump aimed at addressing Americans’ frustration with the cost of living, which together amount to a full-on effort to embrace populist economic ideas.

Under the Military Lending Act, there is a cap of 36 percent on many loans targeted at active-duty service members, but the financial industry has fiercely resisted a more broadly applicable cap.

MSN

 

[Dr. Truth]

Can’t be mad at this

 

[blackbull1970]

Two things he could do to get Americans to fully support him and forget all his BS…

• Force the GOP to pass a bill for single payer healthcare.

• Release all the files unredacted on the existence of UFOs/Aliens.

I would fully support him if he did that.

 

[lightbright]

Trump warned credit card crackdown will trigger financial crisis for millions​

Donald Trump’s crackdown on credit cards risks pushing millions of poor Americans into financial crisis, some of Wall Street’s most powerful groups have warned.

Mr Trump is pressing ahead with plans to temporarily cap credit card interest rates for 12 months at 10pc from January 20.

However, the proposal is facing a backlash over fears it will force banks to cancel cards and pull back lending to consumers with the lowest credit scores.

On Monday, the American Bankers Association (ABA), which represents major lenders like JP Morgan, hedge fund billionaire Bill Ackman and the Bank Policy Institute (BPI) all rounded on Mr Trump over the plan.

Mr Ackman, who has publicly supported Mr Trump, added: “My concern about capping rates at 10pc is that doing so will inevitably cause millions of Americans to have their cards cancelled as credit card companies lose the ability to adequately price subprime credit risk.

“Consumers denied credit cards will be forced to turn to loan sharks whose rates and terms will be vastly worse for borrowers.”

The BPI said the cap would “be devastating for millions of American families and small business owners … the very consumers this proposal intends to help”. The ABA said the move would push consumers towards “less regulated, more costly alternatives”.

Mr Trump’s announcement sent shares in US credit card providers sliding on Monday, with Capital One leading the fallers plunging by as much as 6.24pc.

In the UK, as much as £8bn was wiped off the market value of British banks. Shares in Barclays, which has a US credit card business, fell by 3.3pc in London. Shares in NatWest were also down by 1.2pc, even though the bank does not operate a US credit card business.

The plan has stoked widespread fears because credit cards are so vital for the US economy, with the number of accounts hitting a record 642 million in the third quarter of 2025.

This means the US has nearly twice as many credit card accounts as it does people. Total credit card debt is at a record $1.23tn (£891bn) – up by 39pc since the pandemic began.

In theory, capping at 10pc should dramatically reduce borrowers’ costs because it would more than halve the average rate paid, which was 22.5pc in November.

At no point since at least 1994, when Federal Reserve data began, has the rate been as low as 10pc. According to Vanderbilt University, a 10pc cap would save US consumers $73bn net a year.

However, analysts warn it is precisely the people who Trump is trying to help that will be hit the hardest by his rate cap because it will force banks to do less lending.

Justin Begley, economist at Moody’s Analytics said: “If the government does indeed enforce this policy on the banks, then it’s just going to become completely unprofitable to lend to people that are of higher credit risk.

“I would disagree with people who are saying that the banks can absorb this. The banks have to be able to properly price credit risk.”

Banks may simply cancel subprime borrowers’ credit cards outright, Mr Begley added. “That’s something I have heard banks talking about doing. They’re going to want to protect themselves.”

Jefferies economist Mohit Kumar said: “It is likely that lower rates will push credit providers to reassess their lending criteria and the policy ends up creating more harm than good.”

Subprime borrowers have a credit card default rate of 1.2pc, double the overall default rate, according to Moody’s. Currently, subprime borrowers make up 21pc of accounts in default. During the financial crisis, the rate was closer to half.

The measure will hit at a time when low and middle income US households are becoming increasingly overwhelmed with their debts.

The share of Americans who are falling seriously behind on their credit card payments has already soared to a near 15-year high.

Debt advice firms have been warning that America’s cost of living crisis is increasingly hitting middle class households, as families turn to credit just to cover the costs of basic necessities.

MSN

 

[blackbull1970]

Why Black Families Had No Debt In The 1960s

The 1960s were a time when Black families operated under a financial code that kept them debt-free. These families saved strategically and followed rules that disappeared with the next generation. Here are 25 reasons why Black families had no debt in the 1960s.

​

 

[OutlawR.O.C.]

Two things he could do to get Americans to fully support him and forget all his BS…

• Force the GOP to pass a bill for single payer healthcare.

• Release all the files unredacted on the existence of UFOs/Aliens.

I would fully support him if he did that.

You'd fully support him and forget about the racism, rapes, support of rapists/possible pedophiles by refusing to release the Epstein files, Jamuary 6th, his handling of the Covid pandemic, corruption and the myriad other fuck ups if he does those two things?

 

[blackbull1970]

You'd fully support him and forget about the racism, rapes, support of rapists/possible pedophiles by refusing to release the Epstein files, Jamuary 6th, his handling of the Covid pandemic, corruption and the myriad other fuck ups if he does those two things?

Might as well…cuz it’s obvious the rest of this ignorant country has.

It’s why he got re-elected, this ignorant country has short term memory loss.

But the ignorant all remembered…

Biden is ‘Old and Incompetent’

Harris lied about working at McDonald’s…

 

[Database Error]

 

[illdog]

Kinda hoe who wrecks yur new car but..."promises" sum real good head to make you feel better..

 

[MistaPhantastic]

Methods of mass distraction.
He's not trying to help anyone. He's trying to win favor with people so that they'll go along with his other bullshit.
That's why he's always talking about sending checks to the public that the public itself is paying for.
Let's see the unredacted Epstein files.

 

[November 17]

Finance

Trump’s credit card rate cap plan has unclear path, ‘devastating’ risks, bank insiders say​

Published Mon, Jan 12 20268:49 AM ESTUpdated Mon, Jan 12 20264:06 PM EST

Hugh Son@hugh_son
ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email
Key Points

• Trump proposed a one-year 10% cap on the interest rates that American credit card companies can charge customers.
• Shares of Citigroup, JPMorgan Chase, Wells Fargo, Bank of America, Visa, Mastercard, American Express and Capital One fell in response.
• It’s unclear how the cap would be enforced, and bank industry insiders say it would have unintended consequences for consumers and the American economy.

In this article

• COF+0.95 (+0.41%)
• AXP-0.10 (-0.03%)
• V+0.43 (+0.13%)
• MA-2.28 (-0.40%)
• BAC+0.03 (+0.05%)
• JPM+0.48 (+0.15%)
• C+0.25 (+0.21%)
• WFC+0.31 (+0.33%)

Follow your favorite stocksCREATE FREE ACCOUNT

watch now
VIDEO03:31
Pres. Trump calls for credit card rate cap: Here’s what to know

Bank executives were sent scrambling over the weekend after President Donald Trump declared late Friday that American credit card companies would be subject to a 10% cap on the interest rate they can charge customers.

The move sent shares of large banks including Citigroup, JPMorgan Chase, Wells Fargo and Bank of America down between 1% and 3% Monday. Companies more tightly tethered to the card industry, like Visa, Mastercard and American Express, also fell. Capital One, whose loan book is mostly from credit cards, sank nearly 7%.


Trump proposed a one-year cap on interest rates starting Jan. 20. While it’s unclear exactly how that would be enforced, the industry’s message is clear: the plan would bring unintended consequences for consumers and the American economy.

The move would make large swaths of the credit card industry unprofitable, especially tied to customers with less-than-ideal credit profiles, according to banks and analysts. The average credit card rate nationally is 19.7% as of this month, according to a weekly survey from Bankrate.com, while rates for subprime borrowers and store-specific cards are even higher.

Rather than offer loss-making products to consumers, the industry would simply stop offering access to customers with subprime credit, along with a slew of other changes around card programs including scaling back rewards, insiders say. Consumers would either spend less or rely on other forms of unsecured debt, many of which carry even higher interest rates than credit cards, they say.

“We cannot offer products at a loss; there’s no scenario where we would take our entire portfolio to 10%,” said a person with knowledge of the operations of a large bank, who asked to remain anonymous to speak candidly. “It’s not a stretch to suggest this will very quickly tank the economy.”

watch now
VIDEO01:56
What a one-year, 10% credit card interest rate cap could mean for consumers

The drag on the economy from less spending could be more acute for airlines, retailers and restaurants, which would have to make up for lost card revenues by “potentially raising pricing” on their services, KBW analysts led by Sanjay Sakhrani and Chris McGratty said in a Jan. 11 research note.


The industry’s trade groups issued a joint statement late Friday making their case.

“Evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help,” the trade groups said.

(L-R) Wells Fargo CEO and President Charles Scharf, Brian Bank of America Chairman and CEO Thomas Moynihan, JPMorgan Chase Chairman and CEO Jamie Dimon, Citigroup CEO Jane Fraser, State Street CEO Ronald OÕHanley, BNY Mellon CEO Robin Vince, Goldman Sachs CEO David Solomon and Morgan Stanley CEO James Gorman, testify during a Wall Street oversight hearing by the Senate Banking, Housing, and Urban Affairs committee on Capitol Hill in Washington, DC, December 6, 2023.
Saul Loeb | AFP | Getty Images
This isn’t the industry’s first time contending with possible price controls. A bill was introduced last year from Sen. Josh Hawley of Missouri and Sen. Bernie Sanders of Vermont that would limit card APRs at 10% for five years.

While that bill is stalled in Congress, a study released Monday on possible impacts from the Electronic Payments Coalition found that a 10% cap on rates would mean that card issuers would close accounts for nearly 90% of current users, or 175 million Americans. Most accounts with credit scores below 740 would be shut, the study claimed.

Complicating matters, it is unclear to bankers how Trump’s rate cap would take place.

The most straightforward approach, through legislation in Congress, isn’t possible by the proposed Jan. 20 start date, said Tobin Marcus, head of U.S. policy at Wolfe Research.

Other enforcement means, through banking regulators including the Consumer Financial Protection Bureau, are also possible. But the Trump administration has repeatedly tried to shutter that agency, and the industry has had a successful run at defeating CFPB rules in federal courts.

“I’m not aware of an authority that they can use to do this unilaterally in any kind of a sweeping way,” Marcus said. “As far as I can tell, telling them they have until Jan. 20 is an attempt to create pressure and have them do it voluntarily.”

While the exact mechanism that Trump can use to enforce an interest rate cap is unclear, card issuers now face the risk that rates could be headed lower in some form of negotiated compromise with the government, KBW’s McGratty said in an interview.

“Is 10% an opening bid?” he said. “There’s a long distance between 10% and what companies charge today.”

Americans had a collective $1.23 trillion in credit card debt as of the third quarter last year, according to data from the Federal Reserve Bank of New York. Balances have been climbing as many Americans spent down the savings they’d built up during the global coronavirus pandemic.

Correction: This story has been updated to correct the spelling of Capital One

 

[BrownTurd]

Can’t be mad at this

You sound crazy. Dude is garnishing people checks for students loans but give people a break on credit cards. Make it make sense

 

[Pimpslap Slim]

It's a classic trap.
The unwise are going to rack up more and more cc debt that won't be paid off in the timeframe then when the rate goes back up,guess what.....BOOM. Pockets hurtin like hell.
If it goes to 10 it should stay at 10

 

[November 17]

It's a classic trap.
The unwise are going to rack up more and more cc debt that won't be paid off in the timeframe then when the rate goes back up,guess what.....BOOM. Pockets hurtin like hell.
If it goes to 10 it should stay at 10

 

[ghoststrike]

Some are still impressed with the smoke and mirrors of "temporary" and "concepts"

Nowhere near enough:

Two things he could do to get Americans to fully support him and forget all his BS…

• Force the GOP to pass a bill for single payer healthcare.

• Release all the files unredacted on the existence of UFOs/Aliens.

I would fully support him if he did that.

 

[HotNixon36]

As Trump's deadline for a cap on credit card rates looms, banks have only questions and no answers | AP News https://share.google/8R0M3vdPdeYhKTM7w

 

[Kwame Coltrane]

He doesn't have the authority to make them do this. So unless he is planning on threatening banks with regulations, he's just talking out of his ass

 

[TEN]

 

[God-Of-War-420]

Two things he could do to get Americans to fully support him and forget all his BS…

• Force the GOP to pass a bill for single payer healthcare.

• Release all the files unredacted on the existence of UFOs/Aliens.

I would fully support him if he did that.

I've known you where a fucking moron since you defended the new star wars franchise but I didn't take you for a pedophile defender.

Blackbull1970 has named his price to turn a blind eye to pedophilia and it isn't even that steep lol wow.

 

[God-Of-War-420]

You sound crazy. Dude is garnishing people checks for students loans but give people a break on credit cards. Make it make sense

He's taking a steamy shit on the constitution, deploying the military against our own citizens, threatening to attack NATO allies, etc involving us in more regime change wars, aiding the genocide in gaza, attacking black people, black farmers and farms, building a surveillance network with a gay billionaire who is obsessed with the anti Christ and is openly against rights and freedom, is colluding with Russia, destroying civil rights and is a literal fucking pedophile and you have people defending his actions over credit cards lmao that's scary.

I always said if the GOP was smart they'd legalize weed and decriminalize drugs and they'd rule this dumb as group of humans forever.

 

[God-Of-War-420]

Kinda hoe who wrecks yur new car but..."promises" sum real good head to make you feel better..

And Americans are the simp that takes her back over and over with the smallest gesture of kindness from the abusive how lol pathetic lot of losers this country.

 

[God-Of-War-420]

Release THE EPSTEIN FILES!!!

 

[bgbtylvr]

Two things he could do to get Americans to fully support him and forget all his BS…

• Force the GOP to pass a bill for single payer healthcare.

• Release all the files unredacted on the existence of UFOs/Aliens.

I would fully support him if he did that.

Or suicide. That…that would unify the country, the likes of which, this world has never seen.

 

[God-Of-War-420]

He doesn't have the authority to make them do this. So unless he is planning on threatening banks with regulations, he's just talking out of his ass

If he does it it'll be disastrous, it not it'll just pile up on a desk with the other things we're sitting on a hot nail waiting for such as the Epstein files release and those tariff checks! Lol

 

[illdog]

Release THE EPSTEIN FILES!!!

Even maga faithful grittin teeth...we're real good at spottin pdfs..epstein's collection of too yougins "emails/texts/pics/uhd video" will inevitably be designated "the trump files" after 47's participation trickles out.