Valuetainment "Americans Are Being RIPPED OFF" - Trump’s 10% Cap PUTS Credit Cards ON NOTICE
Jan 16, 2026
Rob and Tom Ellsworth, financial experts and frequent contributors, delve into Trump's proposed 10% cap on credit card interest rates. They discuss the potential impacts on affordability and accessibility to credit, exploring who stands to benefit and who might be excluded. Rob warns about the history of failed price controls, while Tom predicts banks might respond by cutting credit limits. The panel highlights how this cap could squeeze higher-risk borrowers into harmful alternatives, sparking an engaging debate on financial strategies and market dynamics.
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Price Caps Often Backfire
- Price controls like a 10% credit-card cap are a typical political response to affordability pain.
- Such caps often backfire because markets and lenders adjust in other ways, reducing access to credit.
Credit Limits Move When Rates Move
- If a strict rate cap is imposed, issuers will tighten credit by lowering limits for higher-risk customers.
- That shift will push many borrowers toward BNPL, payday lenders, or informal loan sources.
COVID Credit-Limit Reductions
- During COVID many card issuers reduced credit limits across the lowest third of consumers to mitigate risk.
- Tom says this corporate playbook shows how issuers respond quickly to stress without government mandates.