Trump Vows 10% Cap On Credit Card Interest Rates

The Wall Street Journal reports:

Former President Donald Trump said he wants to impose a temporary 10% cap on credit-card interest rates. While the idea was met with cheers at a rally this week, it is a long shot and could have unintended consequences if it became a reality.

Borrowers in lower- and middle-income households who carry balances would benefit the most from caps on credit-card charges. But they would also be the first ones banks would stop lending to if Trump’s cap were passed, said David Robertson, publisher of the Nilson Report, an industry publication.

The American Bankers Association said the Trump cap “would result in the loss of credit for the very consumers who need it the most.” It said those borrowers would be forced to use riskier alternatives, including payday lenders and loan sharks.

Read the full article.

If Trump’s “concept of a plan” to cap credit card interest rates at 10% gets you excited, if you think this type of price control is a good idea… then you’re probably living beyond your means, and you shouldn’t be using credit cards at all. https://t.co/BhQbvKjcWT

— Mile High FIRE (@Fire5280) September 19, 2024