Story perspectives

Trump Sets 10% Credit Card Rate Cap, Banks Hesitate

1/21/2026

Summary

Story summary

U.S. President Donald Trump set a January 20, 2025 deadline for credit card companies to cap interest rates at 10% for one year.
Most banks have not adjusted rates, citing a lack of policy details despite bipartisan support.
Experts warn the 10% cap could reduce credit access for higher-risk borrowers, with banks likely cutting limits.
Fintech company Bilt plans to issue credit cards under the proposed rate cap.

History

Historical Context

The Credit Card Accountability Responsibility and Disclosure Act of 2009 aimed to protect consumers by capping interest rates and limiting arbitrary fees, following decades of deregulation that began with the 1978 Supreme Court ruling in Marquette Nat. Bank v. First of Omaha. This law reflects ongoing concerns about lending practices, particularly for high-risk borrowers, and echoes proposals for further reforms, such as President Trump's suggested 10% interest rate cap.

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Story summary

U.S. President Donald Trump set a January 20, 2025 deadline for credit card companies to cap interest rates at 10% for one year.
Most banks have not adjusted rates, citing a lack of policy details despite bipartisan support.
Experts warn the 10% cap could reduce credit access for higher-risk borrowers, with banks likely cutting limits.
Fintech company Bilt plans to issue credit cards under the proposed rate cap.

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