Senator Bernie Sanders (I-VT) has announced plans to introduce legislation capping credit card interest rates at 10%, a policy President-elect Donald Trump suggested during his campaign. Sanders, in a post on X, stated, "During the recent campaign Donald Trump proposed a 10% cap on credit card interest rates. Great idea. Let’s see if he supports the legislation that I will introduce to do just that."
During the 2024 presidential campaign, Trump voiced support for a temporary 10% cap on credit card interest rates, arguing against the high rates of 25% and 30% often charged. This comes as American credit card debt reached $1.17 trillion in the third quarter of 2024, with average interest rates around 24.43% in December. A Trump transition spokesperson affirmed the President-elect's commitment to fulfilling his campaign promises. However, it remains unclear whether Sanders's proposed legislation will reflect the temporary nature of the cap suggested by Trump.
Historically, Republicans, including prominent Trump ally and incoming Senate Banking Committee Chairman Tim Scott (R-SC), have resisted policies perceived as detrimental to businesses or credit availability. Scott notably opposed Biden administration efforts to regulate late fees and further oversee the credit card industry, arguing such measures could restrict credit access, increase rates for on-time payers, and lead to more late payments. Scott's office has not commented on the proposed 10% interest rate cap.
This development raises questions about the potential for bipartisan support for Sanders's bill, particularly given the traditional Republican stance on credit card regulation and the potential conflict with business interests.
