Trump reiterates desire to cap credit card interest rates at 10%
President Donald Trump is renewing his push to cap credit card interest rates at 10%, saying credit card companies have “really abused the public” and he’s vowing to put a stop to it. In a Truth Social post over the weekend, Trump called for a Jan. 20 start date for the proposed one-year cap.
He followed up Sunday night aboard Air Force One, doubling down on the plan.
“They really abused the public, the credit card companies have. I’m not going to let it happen,” Trump said.
Trump blasts credit card companies
Speaking with reporters while returning to Washington, Trump pointed to interest rates that can approach 30%.
“I want a cap on credit card interest rates because you know some are 28, almost 30 percent,” he said, “The people don’t know they are paying 30 percent, no way. We are putting a one-year cap at 10 percent, and they know it.“‘
Trump did specify whether he would attempt to impose the cap through executive action or work with lawmakers to move legislation through Congress.
Possible savings for credit card users
Pressure on prices
The federal regulator of credit unions currently caps interest rates on credit union credit cards at 18%.
Researchers cited by ABC News previously estimated that a 10% cap could save Americans roughly $100 billion a year in interest payments. That estimate is based on current average credit card interest rates, which range from about 19.65% to more than 21%.
Opposition from banks
Strong pushback is expected from banks and industry groups, which argue that an interest rate cap would reduce access to credit, particularly borrowers with weaker credit profiles. They contend some consumers could be pushed toward high-cost alternatives such as payday loans or pawn shops.
Banks also warn that a 10% cap would likely lead to scaled-back rewards programs and other consumer benefits.
The American Bankers Association and affiliated groups said in a statement that if enacted, the cap would, “drive consumers toward less regulated, more costly alternatives.”
Credit card companies generate revenue through a mix of merchant fees, customer fees, and interest charged on outstanding balances.
Billionaire investor Bill Ackman echoed those concerns in a post on X, warning that a cap could lead to widespread account closures.
“My concern about capping rates at 10% is that doing so will inevitably cause millions of Americans to have their credit 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,” Ackman wrote.
Bank stocks were down in early trading Monday.
Credit card debt tops $1 trillion
The Consumer Financial Protection Bureau reported in December that U.S. credit card debt surpassed $1 trillion in 2024, reaching roughly $1.2 trillion. The CFPB said interest costs alone exceeded $160 billion that year.
According to the agency, the average monthly balance for cardholders with prime credit rose to about $8700.
Lending Tree estimates that the national average unpaid balance across bank and retail credit cards was $7,886 in the third quarter of 2025.
In early 2025, Capital One completed its merger with Discover Financial, creating the largest credit card issuer in the country.
Brian Shearer, director of competition and regulatory policy at Vanderbilt Policy Accelerator, said his research shows major banks are generating outsized profits across income levels. He found that a 10% cap would likely reduce lending to consumers with credit scores below 600.
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Ella Rae Greene, Editor In Chief
