Trump’s Warning To Credit Card Companies
President Donald Trump issued a sharp warning Sunday to major credit card companies, saying they could be violating the law if they refuse to comply with his push for a 10 percent cap on interest rates — a proposal he wants in place by January 20.
The president’s comments revive a central campaign promise from his 2024 election victory, aimed at lowering costs for American families as credit card debt continues to soar nationwide. While financial and legal analysts note that a nationwide cap would likely require congressional action, Trump made clear that he expects swift compliance.
“No Longer Let Americans Be Ripped Off”
In a post on Truth Social, Trump accused credit card companies of exploiting consumers with interest rates that often exceed 20 percent.
“We will no longer let the American public be ripped off by credit card companies charging interest rates of 20 to 30 percent,” the president wrote.
Trump did not specify whether the cap would be imposed through executive authority or new legislation. However, a Republican senator familiar with the discussions said he recently spoke with the president and is preparing legislation with Trump’s full support.
The White House has said Trump hopes the cap could take effect by January 20, marking one year since he returned to office.
Massive Savings for American Families
Supporters argue that a 10 percent cap could deliver enormous relief to working Americans and retirees living on fixed incomes. Research examining Trump’s proposal estimates consumers could save as much as $100 billion per year in interest payments.
Federal data shows that roughly 195 million Americans held credit cards in 2024 and paid about $160 billion in interest. Total credit card debt has climbed to approximately $1.23 trillion, the highest level ever recorded.
Average credit card interest rates currently range between 19.5 and 21.5 percent, near historic highs — far above the roughly 12 percent average seen just a decade ago.
Wall Street Pushback Begins
Not surprisingly, the proposal has sparked strong opposition from Wall Street and banking lobbyists. Industry groups argue that a strict cap could reduce access to credit, particularly for higher-risk borrowers, and push some consumers toward costlier alternatives such as payday loans.
In a joint statement, banking organizations warned that a rate cap could “drive consumers toward less regulated and more expensive financial products.”
Despite those claims, several economists say large financial institutions would remain profitable even with a lower interest ceiling, though rewards programs and perks could be scaled back.
Banking Industry Has Benefited Under Trump
Until now, the Trump administration has largely taken a lighter regulatory approach toward major banks. Earlier this year, Capital One completed its acquisition of Discover Financial with minimal resistance from federal regulators, creating the nation’s largest credit card issuer.
Meanwhile, the Consumer Financial Protection Bureau — the agency tasked with policing credit card abuses — has played a reduced role since Trump returned to the White House.
Interest Rate Caps Already Exist
Supporters of Trump’s plan point out that interest caps are not new. Federal law already limits the rates charged to active-duty military members, and credit unions operate under a nationwide cap of 18 percent on credit card interest.
Critics counter that strict caps can reduce lending to borrowers with lower credit scores. Studies of states with tight interest limits show reduced access to consumer credit for higher-risk individuals.
Congress Moves to Act
Lawmakers in both chambers have introduced legislation that would put Trump’s proposal into law. Supporters say the effort is about restoring fairness and accountability to an industry that has posted record profits while American households struggle under rising debt.
Sen. Roger Marshall of Kansas described the plan as a necessary step to “rein in greedy credit card companies and lower costs for hardworking American families.”
As the debate intensifies, Trump’s proposal has sparked rare bipartisan agreement on one point: Americans are fed up with sky-high credit card interest rates — and want relief.
