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White House Mulls Executive Action on 10% Credit Card Cap | PYMNTS.com
Earlier this month, President Donald Trump called for a cap on credit card interest rates. Now, the White House is considering executive action to make
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Earlier this month, President Donald Trump called for a cap on credit card interest rates.
Now, the White House is considering executive action to make that 10% cap happen, Bloomberg News reported Friday (Jan. 16).
This plan, still being drafted, is part of a broader effort to bring down costs for Americans, the report said, citing sources familiar with the matter. The action may also call on regulators to ease some liquidity standards to make the plan more enticing to banks, the sources added.
As Bloomberg noted, the financial industry has spent the past week trying to figure out details of the plan, with Wall Street contending it would harm lower-income consumers and affect their own businesses.
Trump has fixed Jan. 20 as the deadline for card companies to enact this measure. Last week, White House Press Secretary Karoline Leavitt said the president expects companies to reduce their rates by that date, framing it as a “demand” from Trump.
During bank earnings calls last week, lenders such as JPMorgan Chase, Bank of America and Citigroup all expressed their opposition to the cap.
R E L A T E D
Trump Is Taking Aim at Credit Card Swipe Fees. Should You Ditch Visa Stock ASAP?
Visa (V) stock has dropped by more than 6% in the last five trading days, although the overall market has remained fairly stable. The reason for this drop is not related to earnings or guidance but rather politics. Instead, President Donald Trump has renewed his attack on the swipe fees associated with credit cards.. . . . .
Trump is like a kid in a candy store.
