Trump's 10% credit card cap deadline is here. Will card companies comply?

President Trump had set Jan. 20 as a deadline for credit card companies to lower their interest rates to 10% for one year. Now that the date has arrived, most banks and card issuers have largely kept their rates unchanged, while also pushing back against an idea that they say lacks key policy details necessary for them to comply. 

Mr. Trump announced the cap on Jan. 9, giving banks and issuers just 11 days to meet his demand. In his Truth Social post announcing the proposal, he said he wanted to ensure that Americans wouldn't get "'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."

The interest rate cap has drawn bipartisan support from some lawmakers, including Sen. Elizabeth Warren, a Democrat from Massachusetts, and Sen. Josh Hawley, a Republican from Missouri. If enacted, the proposal could save consumers $100 billion per year in reduced interest payments, but the banking industry warns that it could backfire because issuers would be forced to reduce credit access to millions of consumers.

Banks and credit issuers are also seeking more information about the cap, although Mr. Trump has announced no further details on how he'd legislate or enforce the proposed one-year limit on the annual percentage rate (APR) that credit issuers can charge consumers. 

Credit card rates have been sliding lower during the past year, thanks partly to the Federal Reserve's series of 2025 rate cuts. The average APR stood at 19.7% at the end of December, a full percentage point lower than the record high set in August 2024, according to Bankrate.

And many banks offer zero-percent APR cards, which typically provide cards with no interest for an introductory period of, say, 12 to 15 months. After that period, the cards' APRs can rise to a range of roughly 17% to 27%, depending on a consumer's credit score. Mr. Trump's proposal would cap those rates to 10%, as well as any other card that's currently above that level.

White House Press Secretary Karoline Leavitt has said Mr. Trump expects credit card companies to comply with the demand. 

"I don't have a specific consequence to outline for you, but certainly this is an expectation and frankly a demand that the president has made," she said Jan. 16.

The White House did not immediately respond to CBS News' request for comment on how it will enforce the policy or determine if banks are complying with the new proposed rule. 

What do experts say?

Banks and bank lobbyists say they are largely in the dark on how to respond to the proposed cap.

Currently, there's no law or executive order in place mandating that lenders charge no more than 10% interest on credit cards. There's also no generally applicable federal law that limits the interest rate that can be charged by a credit card company, according to the Consumer Financial Protection Bureau. 

Experts say that a rate cap would likely require approval from Congress. 

Mr. Trump could seek to drum up support around a bipartisan bill, such as this one introduced by Sen. Bernie Sanders of Vermont in 2025, said Brian Shearer, the author of the Vanderbilt University analysis that found a 10% limit would save consumers $100 billion per year in interest payments.

If that bill became law, Mr. Trump could force banks to comply. But mandating a rate cap through an executive action may not be enforceable, he said.

How are banks responding?

Because a cap on APRs would eat into bank profits, card issuers would be likely to cut off the most vulnerable borrowers from credit, banks and bank lobbyists say.

Two-thirds of credit card users carrying a balance would be likely to see their credit lines reduced or canceled entirely, according to a Jan. 12 analysis from America's Credit Unions, an industry group representing credit unions. Almost all 47 million Americans with a subprime credit score would lose access to credit, the group found.

In a Jan. 12 investor call, JPMorgan Chase chief financial officer Jeremy Barnum said the proposed interest rate cap would be bad for consumers and could hurt the economy. 

"Specifically, people will lose access to credit, like on a very, very extensive and broad basis, especially the people who need it the most, ironically," he said. "And so, that's a pretty severely negative consequence for consumers, and frankly, probably also a negative consequence for the economy as a whole right now."

The bank also pointed to products it already offers consumers, including cards that offer customers introductory interest rates of 0% for up to 18 months. 

In the meantime, one company is stepping up to offer new credit cards that meet Mr. Trump's proposal. Bilt, a fintech company, said it is rolling out new credit cards that cap interest rates at 10% for one year.