The White House. Photo: Diego M. Radzinschi/ALM
Tuesday morning dawned with no sign of a cap on credit card interest rates, despite President Trump declaring 11 days ago the cap would begin Jan. 20.
Trump got the attention of bank and credit union folks across the land with a Truth Social and X post at 8 p.m. Friday, Jan. 9 as he was flying from the White House to his Florida estate, Mar-a-Lago:
“Please be informed that we will no longer let the American Public be ‘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.
“AFFORDABILlTY! Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%. Coincidentally. the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration.”
America’s Credit Unions (AmCU), the nation’s largest credit union trade group, scrambled to respond to the surprising edict. Less than two hours later AmCU President/CEO Scott Simpson issued a statement opposing the cap, saying it would force banks and credit unions to drop or limit cards for many Americans.
“A 10% interest rate cap would be devastating for credit union members,” Simpson said. “While we appreciate the President’s desire to increase affordability, the plain truth is that capping rates at 10% does not make credit more affordable, it makes it unattainable for millions of working Americans because financial institutions will not be able to offer credit cards to most consumers at a 10% rate.”
Simpson followed up with formal, six-page letter to Trump on Monday, Jan. 12, asking that he reconsider the cap.
But less than 24 hours passed before Trump forced credit unions and banks to shift directions again with a tweet Tuesday, Jan. 13, just after midnight from the White House.
“Everyone should support great Republican Senator Roger Marshall’s Credit Card Competition Act, in order to stop the out of control Swipe Fee ripoff,” Trump posted on Truth Social.
Trump was referring to a bill sponsored by Sens. Marshall (R-Kan.) and Dick Durbin (D-Ill.) that died without a vote in the previous Congress, and that Simpson said was considered “moribund.”
Until it wasn’t. Its sponsors reintroduced the bill that Tuesday.
AmCU, the Defense Credit Union Council, the American Bankers Association and others responded by renewing their opposition to the bill that would income from interchange or “swipe” fees retailers pay banks and credit unions.
On Friday, Jan. 16 AmCU sent four-page letters to leaders of the Senate and House repeating their reasons for opposing the bill. In a call with reporters Tuesday, Simpson said the president’s posts “have caused us to shift gears.”
Simpson said AmCU has sought guidance from the administration on the interest rate cap, but so far has received none. Simpson said in the 11 a.m. call that so far no credit unions had reported any federal contact regarding enforcement or other information on the supposed cap.
“We’re not sure if that was an invitation or an order,” Simpson said.
Simpson said credit unions can take some solace in that the pain of an interest rate cap would be much greater for banks than credit unions, which charge higher fees.
“Our credit card rates are much closer to the President’s objectives than theirs are,” he said.
Simpson said he assumes the approach of November’s mid-term election will sway actions on every bill over the next 10 months. “Politics will hang over everything.”
Contact Jim DuPlessis at Jim.DuPlessis@arc-network.com.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.