Credit Card Interest Rates: Are Companies Mandated to Cap at 10%?
Recent discussions surrounding credit card interest rates have gained significant attention, particularly with the announcement of a proposed 10% cap. This policy, announced by former President Donald Trump, has prompted questions about its legality and feasibility in light of existing regulations.
Proposed Credit Card Interest Rate Cap
On January 10, 2026, President Trump declared his intention to impose a one-year cap on credit card interest rates at 10%. This announcement came amid growing voter concerns about the economy and financial stability.
Key Statements and Context
- Trump’s announcement articulated a desire to protect consumers from high interest rates.
- No existing law currently mandates a cap at 10% on credit card interest rates.
- Trump has advocated for such a cap since his 2024 presidential campaign.
During a press interaction aboard Air Force One on January 11, he asserted that credit card companies would be violating the law if they failed to comply with his proposed timeline. Legal analysts reacted skeptically, noting that without legislative backing, such enforcement would be challenging.
Legislative and Industry Response
The plan has raised significant concerns among financial institutions. A coalition of banks, including the American Bankers Association, argued that a 10% cap would restrict credit availability and adversely affect millions of American families and small business owners.
Despite bipartisan interest in a credit card interest rate cap, actual progress in Congress has been minimal. Lawmakers from both sides, including Senator Elizabeth Warren and Senator Bernie Sanders, have expressed support, yet implementing this cap through legislation by the January deadline presents numerous hurdles.
Current Credit Card Debt Statistics
According to the Federal Reserve Bank of New York, U.S. credit card balances reached a staggering $1.23 trillion in the third quarter of 2025, marking an all-time high. This figure underscores the urgency of addressing the issue of affordability for consumers.
Conclusion: The Challenge Ahead
As it stands, implementing a 10% cap on credit card interest rates involves navigating complex legal and legislative landscapes. Experts predict that efforts to impose such a cap through executive action would likely face significant challenges in courts.
While the proposal has resonated with some voters, many are left questioning the practicality and legality of the intended policy. As discussions continue, observers remain skeptical about the potential for effective change within the projected timeframe.
