WASHINGTON — Sen. Elizabeth Warren (D-MA) is again criticizing President Trump for not following through on a campaign proposal to temporarily cap credit card interest rates at 10%, arguing the delay has cost American consumers billions of dollars in additional borrowing costs.
In a post Monday on X, Warren cited research from The Century Foundation claiming that each day the proposed cap remains unenforced, American families incur an additional $368 million in credit card interest charges.
In a statement, Warren said the cumulative cost has reached approximately $55 billion, money she argued could have been used to fund universal prekindergarten, restore food assistance programs, support rural hospitals or eliminate medical and student debt for millions of Americans.
Warren also pointed to signs of financial stress among consumers, saying Americans are saving a smaller share of their income than at any point in nearly four years while serious delinquencies on credit cards, auto loans and student loans have climbed to their highest levels since the years following the 2008 financial crisis.
‘Profits’ for Wall Street Banks
She accused the Trump administration of allowing Wall Street banks to continue earning billions of dollars in profits while major credit card issuers charge variable annual percentage rates exceeding 25%, according to the report.
Trump proposed a temporary one-year cap on credit card interest rates during his campaign in January, saying the measure would take effect on the first anniversary of his second inauguration. However, no nationwide cap has been implemented.
The proposal has drawn opposition from both credit union and bank trade groups, which have argued that a 10% interest rate ceiling would reduce the availability of credit, particularly for higher-risk borrowers, and could push some consumers toward more expensive forms of financing, according to Benzinga.
