ICBA opposes Trump call to cap credit card rates at 10%

ICBA and other groups expressed opposition to President Donald Trump’s call for a temporary 10% cap on credit card interest rates.

Trump Proposal: In a social media post, Trump said he is calling for the one-year cap to take effect Tuesday, Jan. 20. Whether the president has the authority to cap interest rates without an act of Congress is unclear.

Industry Response: In a joint statement following Trump’s post, ICBA and other groups said that while they share the goal of expanding access to affordable credit, rate caps would reduce credit availability, harming the U.S. families and small-business owners the policy is intended to help.

ICBA Opposition: ICBA has consistently opposed proposals to impose credit card rate caps, including last year’s successful opposition to an amendment introduced by Sen. Josh Hawley (R-Mo.) to impose a 10% all-in annual percentage rate cap for credit cards.

Joint Letter: In a letter to Senate leaders last year, ICBA and the other groups noted:

• Research clearly shows that government price setting, even APR caps, hurts consumers.

• Credit cards are a primary vehicle for expanding financial inclusion.

• Interest rate caps hurt consumers and have disproportionate negative effects on high‐risk borrowers, the population they are intended to help.