Overview
- President Trump has revived a proposal to cap credit-card APRs at 10%, drawing interest from across the political spectrum as Sen. Josh Hawley and Sen. Bernie Sanders promote related legislation.
- The American Bankers Association estimates roughly 75% of open card accounts would face reduced limits or closures under a 10% ceiling, including many borrowers with credit scores above 600.
- Banks warn that customers with strong credit could see higher fees, lower limits, and pared-back rewards as issuers reprice products to comply with a binding cap.
- JPMorgan Chase CFO Jeremy Barnum said the bank would reduce credit supply rather than cut prices under mandated caps and signaled a willingness to challenge price controls in court.
- Federal Reserve figures place average card APRs near 19%–21% as card balances rose to about $1.27 trillion, while economists and commentators caution that a strict cap would trigger credit rationing and push some borrowers toward costlier alternatives.