Trump announces one-year 10% cap on credit card interest rates

The Guardian -  Donald Trump announced a one-year cap that would limit credit card interest rates to 10% this week, in a move that has prompted mixed reaction from lawmakers and beyond.

The president’s social media post on Friday night said the restriction would take effect on 20 January, but he did not provide specifics on how the government would implement it or ensure that companies comply...

During his campaign for a second term, Trump said he would implement such a cap, as American credit card debt hit a record of more than $1.1tn. US credit card debt surpassed that and reached a whopping $1.17tn in the third quarter of 2024, growing from $770bn in the first quarter of 2021.

After not seeing action on that campaign promise, senators Bernie Sanders and Josh Hawley introduced a bipartisan bill in February 2025 to cap credit card interest rates at 10% for the next five years.

“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. 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,” the lawmakers wrote in a statement announcing the bill.