US senators Bernie Sanders and Josh Hawley are set to introduce a bill that proposes a temporary 10 percent limit on credit card interest rates. The move, aimed at curbing high rates that have risen over the past decade, is expected to spark opposition from banks and lenders.
The proposal comes as the average credit card interest rate exceeds 20 percent, with some companies charging up to 22.8 percent in 2023, a level not seen since the Federal Reserve began collecting data in 1994. The cap would apply to rates until 2031, after President Trump’s term ends.
Consumer advocates like Sanders argue that high-interest rates are unfair and exploitative, while Hawley calls them “outrageously high.” However, industry groups, including the American Financial Services Association, have rejected such rate caps, citing concerns they could limit access to credit for millions of Americans who depend on it.
Source: https://www.nytimes.com/2025/02/04/business/credit-card-interest-cap.html