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President Trump has called for a one-year cap on credit card interest rates at 10%. It’s a headline-grabbing proposal — but can he actually do it, and what would it really mean for consumers, banks, and credit unions?
In this episode, Mark Treichel breaks down:
- Why presidents can “call for” caps but can’t impose them unilaterally
- Why credit card rates are high in the first place
- How a 10% cap could reduce access to credit, especially for lower-income borrowers
- Why rewards programs, grace periods, and credit limits could all be at risk
- How credit unions would be affected differently than large banks
- Why well-intended caps can push borrowers toward much worse alternatives like payday lending
Bottom line: It’s good politics, but it could be very bad policy — with consequences that hit the very people it’s supposed to help.
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