Former President Donald Trump recently announced a proposal to cap credit card interest rates at 10% for one year, effective January 20, 2026. This initiative, shared via his Truth Social platform, revives a previous campaign pledge aimed at combating what he describes as credit card companies "ripping off" the American public with high interest rates, often ranging from 20% to over 30%. Current average credit card rates in the U.S. indeed hover between 19.65% and 24%. The proposal suggests significant financial relief for millions of American consumers burdened by substantial outstanding credit card debt. Researchers estimate that a 10% cap could save Americans approximately $100 billion annually in interest payments. However, the implementation of such a cap is not straightforward. Trump did not specify whether it would come into effect through executive action, agency rulemaking, or congressional legislation. Legal experts suggest that a mandatory nationwide interest rate cap would likely require congressional approval, as existing federal law, specifically the Consumer Financial Protection Act, explicitly forbids federal rate caps. The proposal has drawn immediate and strong opposition from the banking industry and financial institutions. Major banks like JPMorgan Chase have voiced concerns, stating that such a cap could have severe negative consequences, including a significant reduction in credit availability, particularly for consumers with lower credit scores who rely on credit access. Critics also warn that banks might scale back credit card rewards programs and that consumers seeking credit could be pushed towards less regulated, potentially more costly alternatives. Despite industry pushback, there have been bipartisan legislative efforts in the past, led by senators such as Bernie Sanders and Josh Hawley, to introduce similar interest rate caps, indicating a broader political interest in addressing high credit card costs. The discussion surrounding this proposal highlights the ongoing debate between consumer protection and the potential impacts on the financial industry and credit markets.