Overview
- Trump’s Jan. 20 target for a one-year, 10% APR limit passed without broad issuer compliance, and the administration is now pressing Congress while encouraging limited voluntary offers.
- Average card rates sit near multi-decade highs — roughly 21% to 22% for accounts carrying balances — with outstanding credit card debt at a record $1.23 trillion, according to Fed data.
- American Express CEO Stephen Squeri said a cap would shrink card availability and credit lines and slow small businesses, echoing JPMorgan’s warning that many consumers would lose access to credit.
- Vanderbilt researchers estimate about $100 billion in annual consumer interest savings under a 10% cap, with issuers likely to trim rewards by as much as $27 billion and raise other charges to offset losses.
- Experts caution that a temporary cap could trigger payment shock when rates reset and lead lenders to tighten underwriting, while industry groups project closures or severe limits on roughly three-quarters to four-fifths of accounts.