Trump calls for one-year cap on credit card rates at 10%

President Donald Trump on Friday called for a one-year cap on credit card interest rates at 10%, effective Jan. 20, without specifying details. So, without law, all this becomes another bluff.

“Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY!” - $TRUMP

Hours before his message, Senator Bernie Sanders, a Vermont independent - “Trump promised to cap credit card interest rates at 10% and stop Wall Street from getting away with murder. Instead, he deregulated big banks charging up to 30% interest on credit cards.”

In a letter last year to Sanders and Senator Josh Hawley, a Missouri Republican, a group of banking trade groups - “Many consumers who currently rely on credit cards would be forced to turn elsewhere for short-term financing needs, including small gold lending mortage shops, auto title lenders or worse, such as loan sharks, unregulated online lenders and the black market.”

However, Bank Policy Institute - “while the proposed cap is a well-intentioned effort to reduce the high debt burden some households are facing, it would harm consumers’ access to card credit.” The group also said such a move could force card issuers to reduce cardholder benefits, including lucrative rewards tied to purchases.

This is one such move which should be followed everywhere as there are some banks which charges more than 40% interest rates.