Cap on the Card? U.S credit rates set to drop to 10%

January 10, 2026 (MLN):  The United States could see sweeping changes to consumer lending rules under a proposal that would temporarily cap credit card interest rates.

President Donald Trump has stated that credit card companies have been charging interest rates as high as 20 to 30% or more, arguing that such practices have unfairly burdened Americans.

He blamed the Biden administration for allowing those rates to persist and said affordability should be a top economic priority, in a post on Truth Social.

Building on this critique, he has proposed a 10% cap that would last for one year and would take effect on January 20, 2026.

He linked the timing to the anniversary of his previous presidency and framed the move as part of a broader effort to strengthen the U.S. economy.

In response to this, The American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America said they shared the goal of expanding access to affordable credit.

However, they warned that  the proposal could have serious unintended consequences, according to a press release issued by American Bankers Association.

“Evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small businesses who rely on and value their credit cards,” the groups said.

They added that such a cap could drive consumers toward “less regulated, more costly alternatives” and said they look forward to working with the administration to preserve access to credit.

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