Credit card accounts could fall sharply under Trump's proposed 10% rate cap, experts say

President Trump proposed a national 10% cap on credit card interest rates, and industry studies cited in the article say such a cap could lead to as many as four-fifths of card accounts disappearing; experts note a national cap would require an act of Congress and would likely face legal challenges.

President Donald Trump called for a national 10% cap on credit card interest rates and said it would take effect Jan. 20. Industry studies cited in the article report that a 10% cap could eliminate up to 80% of credit card accounts as issuers narrow lending. Experts and legal analysts say a national cap would require congressional action and would likely face court challenges, so implementation is uncertain. Key points: - Trump announced a proposal for a 10% national cap on credit card APRs and set a Jan. 20 effective date on social media, as reported. - An Electronic Payments Coalition study of the Missouri market and other industry analyses suggested up to 80% of credit card accounts could lose access under a 10% cap. - The Vanderbilt Policy Accelerator estimated a 10% cap could save consumers about $100 billion a year in interest while also estimating roughly $27 billion a year in lost rewards. - Interest-rate caps are normally set by states; analysts and the Congressional Research Service said a nationwide ceiling would require an act of Congress and would likely be subject to legal challenges. Summary: If enacted, analysts say the cap could sharply reduce available credit for many consumers while lowering interest costs for those who keep accounts. However, a national rate cap would require congressional legislation and is expected to face court challenges, so its enactment and timing remain undetermined at this time.