It’s unclear if congressional approval is needed.
WASHINGTON โ President Donald Trump called for a one-year, 10% cap on credit card interest rates in a Truth Social postย Friday evening.
He said he wanted the cap to take effect Jan. 20, exactly one year after he was sworn into office for the second time. The post didn’t explain how the cap might be implemented, whether credit card companies would participate voluntarily, or if and how it would be enforced by the government.ย
“We will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more,” he wrote in a post.ย
He blamed the current interest rates on former President Joe Biden and cited “AFFORDABILITY!” as the reason for his idea.
It’s a move Sen. Elizabeth Warren called a “joke.”ย
“Begging credit card companies to play nice is a joke. I said a year ago if Trump was serious Iโd work to pass a bill to cap rates. Since then, heโs done nothing but try to shut down the CFPB,” she wrote. “Trump doesnโt care about affordability.”
He previously called for interest rates to lower, calling the 30% rate “unacceptable” while on the campaign trail in 2024. Reuters said analysts dismissed it at the time because that kind of action would require congressional approval. It’s unclear if congressional approval is needed for Trump’s current idea.ย
Similar legislation has previously been introduced in the House of Representatives and Senate, but with a much longer timeline to enact.ย
The Biden administrationย tried to cap all credit card late fees to $8ย in 2024 in an effort to end what his administration called “junk fees.” Regulators said the move would have saved Americans up to $10 billion a year by cutting theย average credit card late fee down from $32.
A Texas judge blocked the order, and the Trump administration’s Consumer Financial Protection Bureau laterย sided with banks suing over the change, vacating the rule.
