US President Donald Trump has announced a one-year cap on credit card interest rates, capping them at 10% for the next 12 months, in a move that has sparked mixed reactions from lawmakers and industry experts.
The announcement was made by Trump through his social media platform Truth Social, with the restriction set to take effect on January 20th. The president claimed this would prevent American consumers from being "ripped off" by credit card companies charging interest rates of up to 30%. However, critics argue that this move does not address the root cause of high interest rates and may even have unintended consequences.
The news has sparked debate among lawmakers, with some expressing skepticism about Trump's ability to implement such a cap without congressional approval. Senator Elizabeth Warren has stated that "begging credit card companies to play nice is a joke" and claims that Trump does not care about affordability. Meanwhile, Senator Josh Hawley has hailed the move as "fantastic", saying he looks forward to voting for it.
Industry groups have also weighed in on the issue. The Bank Policy Institute and the American Bankers Association have expressed concerns 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 their credit cards. However, Hawley has disagreed, stating he supports the move.
The announcement comes as the US credit card debt continues to rise, with Americans owing over $1.17 trillion in outstanding balances. Trump had previously campaigned on implementing a similar cap during his 2016 presidential campaign, but it did not materialize until now.
The announcement was made by Trump through his social media platform Truth Social, with the restriction set to take effect on January 20th. The president claimed this would prevent American consumers from being "ripped off" by credit card companies charging interest rates of up to 30%. However, critics argue that this move does not address the root cause of high interest rates and may even have unintended consequences.
The news has sparked debate among lawmakers, with some expressing skepticism about Trump's ability to implement such a cap without congressional approval. Senator Elizabeth Warren has stated that "begging credit card companies to play nice is a joke" and claims that Trump does not care about affordability. Meanwhile, Senator Josh Hawley has hailed the move as "fantastic", saying he looks forward to voting for it.
Industry groups have also weighed in on the issue. The Bank Policy Institute and the American Bankers Association have expressed concerns 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 their credit cards. However, Hawley has disagreed, stating he supports the move.
The announcement comes as the US credit card debt continues to rise, with Americans owing over $1.17 trillion in outstanding balances. Trump had previously campaigned on implementing a similar cap during his 2016 presidential campaign, but it did not materialize until now.
like i get the intent is to protect ppl from getting ripped off, but wont it just make credit card companies find other ways to screw us over? 
i mean 10% is still kinda steep right? 
idk about senator elizabeth warren tho, seems legit in her concerns... 
and what's up with hawley being all hyped about this? does he actually use a credit card or something? 
and create drama. I'm still waiting for some credible sources to back up this claim... like the Federal Reserve or a reputable credit card industry report. It sounds like a half-baked solution to a complex problem, and I'm not convinced it'll have the desired effect 
on the other hand, i do think it's kinda awesome that trump is finally doing something about credit card interest rates... even if it is a bit half-baked. 
I'm thinking, if they're gonna put a cap on interest rates, why not also limit the minimum payment amounts? People are already getting hit with huge bills and then having to pay just enough to keep their credit from getting ruined... it's like playing whack-a-mole! 
The banks might complain about reduced profit margins, but I think most Americans would be for that 
.
This whole thing has me wondering if people are just too gullible. I mean, come on, 30% interest rate? It sounds like the Wild West out there! 
But seriously, have we learned nothing from history? Those caps always seem to backfire and lead to more problems down the line. What's the plan for regulating these credit card companies when Trump himself can't even get one past Congress without stirring up a fuss? 
It seems like a short-term solution that might help some people but also risks hurting others who need access to credit. I mean, Senator Hawley is all about supporting small business owners and stuff, so hopefully he knows what he's doing when it comes to implementing this cap... 
what do u think, should this cap be permanent or just for 12 months? maybe it'll get ppl thinking about their spending habits and encourage them to cut back on unnecessary purchases 
, can't believe they're actually doing something about credit card debt! but at the same time I'm lowkey skeptical about how this is gonna work in practice... I mean Trump did just announce it on Truth Social lol. and what's with all the pushback from industry groups? shouldn't they be supporting consumers not profiting off their debt? 
anyway, 10% cap might sound good but what about the fine print? are they gonna make up for lost revenue elsewhere? 
) but others, like Elizabeth Warren, are all "no way" - they're saying that just because Trump says the credit card companies should play nice doesn't mean it's gonna happen. And can we talk about how this is actually gonna affect people? Like, do you think credit card companies will even comply with a 10% cap?! 
I mean, i get where trump's coming from, wanna help ppl out, but is it really that simple? 
. Plus, what about all the people who use credit cards for stuff that's not just for emergencies or big purchases? A 10% cap is still super high and could be tough on low-income families and students who need access to credit 
, but what about those with existing credit cards? do they just have to find new cards or something? 
. but i'm curious to see how this all plays out 
. i'm just waiting to see how this all plays out 
its like, if ur broke, u can't afford 30% interest rates but that dont mean u should get more money from the govt 
gotta wonder what trump's plan is for when the credit card companies just start charging ppl higher rates or something 
. What's next? Capping interest rates at 0% and expecting banks to just lose money? That's a recipe for disaster 
. Don't get me wrong, I'm all about affordability, but this feels like a Band-Aid solution at best 