Trump pushes a 1-year, 10% cap on credit card interest rates. Banks balk
AP News••business
Key Points:
- President Donald Trump revived his campaign pledge to cap credit card interest rates at 10% for one year, aiming for implementation by January 20, 2025, which could save Americans approximately $100 billion annually in interest payments.
- The credit card industry and Wall Street oppose the proposal, arguing it could reduce credit availability for low-income consumers and push them toward higher-cost alternatives like payday loans.
- Currently, Americans carry about $1.23 trillion in credit card debt with average interest rates between 19.65% and 21.5%, near historic highs since the mid-1990s, despite a recent decline due to lowered benchmark rates.
- Some researchers contend that a 10% cap would not cause massive account closures because banks
