Banking and Finance Law Daily Wrap Up, CREDIT, DEBIT AND GIFT CARDS—Warren pushes bank regulators to act on 10 percent credit card cap, (Apr 29, 2026)
Organizations Mentioned:American Bankers Association | Bank Policy Institute | Consumer Bankers Association | Consumer Financial Protection Bureau | Financial Services Forum | Independent Community Bankers of America
By Suzanne Cosgrove
President Trump called for a one-year cap on credit card interest rates as of Jan. 20, 2026, but nothing has materialized.
In a letter dated Monday, April 27, Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking Committee, pressed bank regulators to let her know if enforcement actions against big banks currently violating the president’s purported 10 percent cap are forthcoming. In the letter, that was sent to Michelle Bowman, vice chair for supervision of the Federal Reserve Board, Jonathan Gould, Comptroller of the Currency, and Travis Hill, chairman of the Federal Deposit Insurance Corporation, Warren noted that prior to, and in the months that followed, President Trump’s January credit card rate cap directive, federal agencies have done nothing to rein in excessive credit card interest rate charges.
As reported previously (see Banking and Finance Law Daily, Jan. 26, 2026), Warren followed up with Consumer Financial Protection Bureau Acting Director Russell Vought shortly after the president’s January 20 deadline, urging the agency to use existing authorities to address credit card pricing practices and consumer complaints while Congress considered legislation on interest rates.
In the memo to Vought, Warren cited CFPB data that indicated the average annual percentage rate for credit cards had reached the highest level since 2015, with an average APR of 25.2 percent for general purpose cards and 31.3 percent for private label cards.
Other actions: “The President’s deadline is long past, the big banks have predictably refused to act, and Americans still face average credit card interest rates of roughly 25 percent,” Warren wrote in her latest letter.
“Instead, in recent months, your agencies have teamed up with banks and loan sharks to overturn a state law that would protect consumers from exorbitant credit card costs,” she continued. “Specifically, in February 2025, the Federal Deposit Insurance Corporation pulled legal support for Colorado’s new law that would place limits on how much interest a lender can charge on credit cards and other financial products, including payday loans.”
Warren added: “Your agencies have also blessed anticompetitive mergers that will further exacerbate credit card cost pressures for consumers. Last April, the Federal Reserve approved Capital One’s acquisition of Discover, creating the nation’s largest credit card company.”
Industry opposition. Banking groups oppose the credit card rate cap proposal, putting out a statement railing against the idea following Trump’s January 9 Truth Social post in which he called for the one-year 10 percent cap (see Banking and Finance Law Daily, Jan. 12, 2026). “We share the President’s goal of helping Americans access more affordable credit,” they said in a release signed by the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum and Independent Community Bankers of America. “At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small businesses who rely on and value their credit cards, the very consumers this proposal intends to help,” the groups said.
Agency responses requested. Addressing the agencies in the April 27 letter, Warren asked the regulators to let her know their responses to a series of related questions, including:
Do you support the President’s directive to cap credit card interest rates at 10 percent? If not, have you shared your opposition with the White House?
Which legal authorities will your agency use to implement and enforce the President’s directive?
When do you intend to issue guidance to banks under your supervision regarding implementation of this directive and consequences for violating it?
The senator requested the agencies send her their written replies by May 11.
Companies: American Bankers Association; Bank Policy Institute; Consumer Bankers Association; Financial Services Forum; Independent Community Bankers of America
LegislativeActivity: BankingOperations ConsumerCredit CreditDebitGiftCards FinancialStability InterestUsury OversightInvestigations TruthInLending