Trump Says He Will Temporarily Cap Credit Card Rates

President Donald Trump on Friday announced that he would put a temporary cap on credit card interest rates with a limit of 10 percent, in line with an idea he floated on the campaign trail.

“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 percent,” Trump said in a social media post.

He said there would be a one-year cap on credit card rates as of Jan. 20.

It is unclear what authority the president could use to impose such a cap without authorization by Congress.

Legislation sponsored by Sen. Bernie Sanders (I-Vt.) and cosponsored by Sen. Josh Hawley (R-Mo.) would impose a 10 percent cap on credit card rates for five years. Similar legislation has been introduced in the House.

The primary regulator with jurisdiction over credit card practices is the Consumer Financial Protection Bureau, an agency that the administration has suggested should not exist and has slashed funding for. Acting Director Russell Vought requested funds for the agency on Friday.

The average annual percentage rate charged on credit card accounts was 22.3 percent as of November, according to Federal Reserve data, up from 12.9 percent in late 2013.

The policy is the latest in a string of announcements this week by Trump aimed at addressing Americans’ frustration with the cost of living, which together amount to a full-on effort to embrace populist economic ideas.

Under the Military Lending Act, there is a cap of 36 percent on many loans targeted at active-duty service members, but the financial industry has fiercely resisted a more broadly applicable cap.