Trump to cap credit card interest rates at 10%

Scott Simpson

President Donald Trump Friday night posted on Truth Social that he intends to cap credit card interest rates at 10% for one year, effective Jan. 20. Trump pointed to affordability concerns facing many consumers, and specifically called out "credit card companies that are charging interest rates of 20 to 30%." America's Credit Unions President/CEO Scott Simpson issued the following statement: 
 
“Credit unions were founded as the original consumer protectors, and that mission still shows up in the real-world value they deliver every day. Their members consistently benefit from the lowest rates in the marketplace, roughly half the average APR charged by other issuers, which translates into meaningful, measurable savings for working families. That’s affordability people can feel in their financial well-being. A 10% interest rate cap would be devastating for credit union members. While we appreciate the President's desire to increase affordability, the plain truth is that capping rates at 10% does not make credit more affordable, it makes it unattainable for millions of working Americans because financial institutions will not be able to offer credit cards to most consumers at a 10% rate. We will continue to work to ensure this policy does not harm the very people the President intends to protect.”

​- Scott Simpson, America's Credit Unions President/CEO 
 
America's Credit Unions has advocated against legislative efforts to place a 10% cap on credit card interest rates as it would reduce access to credit and harm consumers. The association successfully advocated to keep such provisions out of the GENIUS Act. Data from the credit card marketplace shows that credit unions consistently offer lower credit card rates than banks, due to their cooperative structure.
 
America's Credit Unions will continue to emphasize how cooperative finance supports consumers' financial well-being.

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