President Trump has called for a one-year cap on credit card interest rates at 10%. Lawmakers are considering passing legislation to address the high rates that are contributing to Americans accumulating credit card debt. The proposal has bipartisan support but faces opposition from credit card companies concerned about losing revenue.

Credit card debt in America has reached record highs, costing consumers more to pay off. Trump’s proposal for a 10% cap on credit card interest rates has sparked debate among lawmakers, with some supporting the move to address rising debt loads. Credit card companies are concerned about potential revenue losses due to the cap.

Sen. Elizabeth Warren has signaled support for capping credit card rates, working with Trump on potential legislation. Credit card debt has risen significantly, reaching $1.23 trillion in the third quarter of 2025. Despite efforts to lower interest rates, Americans continue to struggle with high debt and rising interest payments.

Hedge fund billionaire Bill Ackman has voiced concerns about Trump’s proposal, suggesting it could lead to card cancellations. Trump’s promise of a 10% interest rate cap follows bipartisan legislation introduced by Sens. Bernie Sanders and Josh Hawley. Despite efforts to lower rates, Americans are still burdened by high credit card debt.

Consumer protection experts warn that high credit card interest rates trap consumers with hidden fees and shady terms. Limited legal recourse leaves consumers vulnerable to unfair practices by credit card companies. Oversight of the industry has been reduced, allowing companies to charge excessive interest without consequence.

The credit card industry has faced criticism for charging consumers billions in interest, contributing to their profit margins. Trump’s proposal to cap interest rates has sparked debate over consumer protection and financial practices. Efforts to address rising credit card debt continue, with lawmakers and industry stakeholders weighing the impacts of rate caps.

Read more at Yahoo Finance: Trump’s big swing at credit card interest rates targets a growing American problem