Overview
- President Trump set a Jan. 20, 2026 deadline and said companies would be breaking the law if they do not impose a one-year 10% ceiling on credit-card APRs.
- Shares of American Express, Visa and Mastercard fell, Barclays slid about 3%, and Capital One dropped nearly 7% as investors priced in potential revenue hits.
- Federal Reserve data put the average U.S. credit-card rate near 20%, meaning the proposed ceiling would cut typical APRs roughly in half.
- Analysts, including Hargreaves Lansdown’s Matt Britzman, warned a 10% cap could force banks to reduce credit limits, close riskier accounts and pare rewards, with one senior banker telling CNBC lenders cannot offer products at a loss.
- Bipartisan bills proposing a similar 10% cap have been introduced by Sens. Josh Hawley and Bernie Sanders and by Reps. Alexandria Ocasio-Cortez and Anna Paulina Luna, but they have not become law.