Trump's credit card rate cap plan has unclear path, bank insiders say

President Trump proposed a one-year 10% cap on credit card interest with a Jan. 20 start date; bankers and industry groups say enforcement and consequences are unclear.

President Donald Trump announced a proposal to cap credit card interest rates at 10% for one year, with a proposed start of Jan. 20. The announcement prompted declines in shares of major banks and card networks in premarket trading. Bank executives, analysts and trade groups raised concerns about how the cap would be enforced and about potential consequences. The proposal has drawn attention because industry insiders say some card portfolios could become loss-making under a 10% limit. Key facts: - The proposal is reported as a one-year 10% cap on credit card interest, with a stated start date of Jan. 20. - Premarket trading showed share declines for several large banks and card companies, according to the article. - Bank executives and analysts told the article that a 10% cap would make many parts of the card business unprofitable and could reduce access for customers with lower credit scores. - Observers cited in the article said it is unclear how the cap would be implemented and that a unilateral sweep to impose it by Jan. 20 appears uncertain. Summary: Industry groups and bank insiders say the proposed cap could reduce credit availability and change card programs. Undetermined at this time.