Banks balk as Trump pushes for 1-year, 10% cap on credit card interest rates
PBS••business
Key Points:
- President Trump has proposed capping credit card interest rates at 10%, aiming to save Americans approximately $100 billion annually in interest payments, according to researchers.
- The credit card industry and banks strongly oppose the plan, arguing it would hurt low-income consumers by reducing credit availability and pushing them toward costly alternatives like payday loans.
- Currently, Americans carry a record $1.23 trillion in credit card debt with average interest rates near 20%, significantly higher than a decade ago.
- While some lawmakers from both parties support interest rate caps, critics point to historical examples where strict caps led to reduced credit access for less creditworthy borrowers.
- The White House has not clarified the specifics of Trump's proposal or engagement with credit card companies,
