President Trump’s proposal for a one-year cap of 10% on credit card interest rates would harm consumers and small businesses by reducing credit availability, the American Bankers Association and four banking associations said.
In a post on Truth Social, Trump called for a one-year 10% cap starting Jan. 20, to coincide with the anniversary of his second inauguration. The president did not say whether he intends to implement the cap through executive action or if he expects Congress to pass legislation to make it effective.
ABA and the other associations issued a joint statement saying that they share Trump’s goal of expanding access to affordable credit.
“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,” they said. “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,” they added.
