President Trump said on Jan. 9 that he would call for a one-year cap on credit card interest rates of 10 percent, potentially starting later this month, though its enforcement may depend on Congress.
In a Truth Social post, Trump said that Americans are being “ripped off” by credit card companies that charge interest rates between 20 and 30 percent, and vowed his administration will put an end to it.
“AFFORDABILITY! Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%,” the president stated.
The cap’s proposed start date coincides with the anniversary of Trump’s second-term inauguration and, if implemented, would fulfill his 2024 election campaign pledge.
Who could have seen that coming?
Two months later… https://t.co/POf3Y4jlrq pic.twitter.com/D4BlY4PD1i
— zerohedge (@zerohedge) January 10, 2026
As Bloomberg reports, card-lending has become highly lucrative with JPMorgan saying that in 2024 the net yield on its more than $200 billion in card loans was 9.73%. That drove the bulk of the $25.5 billion of revenue for its card services and auto unit, though the bank also had about $7 billion of charge-offs tied to cards.
Banking associations, including the Bank Policy Institute, issued a joint statement on Jan. 9 saying the 10 percent cap on credit card interest rates would reduce credit availability and adversely affect families and small business owners who rely on credit cards.
“We share the president’s goal of helping Americans access more affordable credit,” the groups said in a joint statement late Friday.
“At the same time, 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.”
“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives. We look forward to working with the administration to ensure Americans have access to the credit they need,” the statement reads.
A credit union trade group called a potential cap “devastating” for its members.
“Institutions will not be able to offer credit cards to most consumers at a 10% rate,” said Scott Simpson, the president of America’s Credit Unions.
“A 10% cap would mean the end of credit cards for most consumers except those who need them the least,” said Matthew Goldman, founder of Totavi, a consulting firm to electronic-payment and other financial technology companies. For example, “those with very good credit.”
As Aldgra Fredly reports for The Epoch Times, enforcement of the interest rate cap remains uncertain, given that the administration requires authorization from Congress to proceed.
There have been some legislative efforts in Congress to pursue such a proposal, but they have yet to become law. In his post, the president did not offer explicit support to any specific bill.
In February last year, Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) introduced bipartisan legislation to limit credit card interest rates to 10 percent for five years.
According to the senators, credit card companies earned about $130 billion in interest and fees in 2022, while the average U.S. household with credit card debt carried more than $21,000 of it as of 2023.
“When large financial institutions charge over 25 percent interest on credit cards, they are not engaged in the business of making credit available. They are engaged in extortion and loan sharking,” Sanders said in a Feb. 4, 2025, statement.
“We cannot continue to allow big banks to make huge profits ripping off the American people. This legislation will provide working families struggling to pay their bills with desperately needed financial relief.”
In the same statement, Hawley said the proposed legislation aligns with Trump’s 2024 election pledge, adding that the cap will provide “meaningful relief” to working Americans.
Following Trump’s announcement on Jan. 9, Hawley signaled his support for the move, saying on social media, “Fantastic idea. Can’t wait to vote for this.”
Trump has sought to dismantle the Consumer Financial Protection Bureau (CFPB), the independent bureau within the Federal Reserve System responsible for overseeing credit card regulations. Acting Director Russell Vought, who also serves as the White House budget chief, has halted most of the agency’s operations.
Last year, the Trump administration asked a federal court to throw out a CFPB rule capping credit card late fees at $8, saying it agreed with business and banking groups that alleged the rule was illegal. A federal judge subsequently threw out the Biden-era rule.
The Epoch Times has reached out to the White House for comment and did not receive a response by the time of publication.
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