Overview
- At the World Economic Forum in Davos, President Trump asked Congress to impose a one-year 10% cap on credit-card APRs after an initial Jan. 20 target passed without enforcement.
- Legal experts and lawmakers say a nationwide cap would almost certainly require legislation, with passage viewed as a long shot.
- JPMorgan Chase CEO Jamie Dimon called the cap an “economic disaster,” and Citi’s Jane Fraser warned it would curb spending and access to credit, echoing broader industry opposition.
- The American Bankers Association estimates 74% to 85% of open card accounts could be closed or cut, affecting at least 137 million cardholders if a 10% ceiling were imposed.
- Bank of America and Citigroup are reported to be considering new 10% APR card products, while fintech Bilt has launched one-year 10% offers, even as mortgage pros caution that tighter credit limits could hurt homebuyer eligibility.