America's Credit Unions responds to President Trump's latest call for 10% Credit Card Interest Rate Cap

Scott Simpson

In response to President Trump's remarks this morning at the Davos World Economic Forum where he reiterated his desire for a 10% government mandated cap on credit card interest rates, America's Credit Unions President/CEO Scott Simpson released the following statement.
​
If you have any questions or would like to discuss further, please don't hesitate to reach out to myself or [email protected], thank you!

“While credit unions uphold a shared desire with the President to make life more affordable for American households, a one-year, 10 percent government induced cap on credit card interest rates would have the opposite effect on affordability for many consumers. Experience shows that rigid and arbitrary rate caps do not lower costs, they restrict access to affordable products for families who need them the most. 

“As Congress considers this proposal, lawmakers should reject a policy that would shrink access to credit and harm the very families it aims to help. Instead of advancing a rate cap that risks cutting consumers off from credit, the public would benefit if Congress focused on expanding access to institutions that already deliver affordability and financial stability for more than 145 million Americans: credit unions,” said Scott Simpson, President and CEO of America's Credit Unions. 

Federally chartered credit unions cap credit card interest rates at 18 percent, and many offer options well below that, with rates for classic cards averaging near 12 percent, according to the National Credit Union Administration. 

“There is already a proven, market-based model delivering affordability at scale for American households. Credit unions are member-owned, not-for-profit community focused institutions that price credit to serve people, not maximize profits. They operate under existing statutory limits and consistently offer lower rates without government mandates. 

“From their onset, credit unions were built to serve consumers first, and that purpose continues to translate into real financial benefits for millions of Americans. Every day, credit unions deliver lower borrowing costs and real savings, with credit card rates that are significantly below market averages and meaningfully reduce the cost of credit for working families,” concluded Simpson.  ​

---