Credit Card Cap Conundrum
A looming political wildcard clouds the outlook. Trump said last week he favors a one-year cap on credit card interest rates at 10%, starting Jan. 20, though details on enforcement remain unclear.
Banking industry groups warn such a cap could choke off access to credit for everyday consumers. JPMorgan Chase CEO Jamie Dimon called the idea an “economic disaster.”
Still, some lenders are exploring ways to adapt. A source familiar with the matter said Bank of America is considering new credit cards priced at 10% interest to meet Trump’s demands.
For Capital One, the stakes are high. An interest rate cap would strike at the core of its business model, which is among the most dependent on credit cards of any major U.S. bank — adding urgency to why Capital One to Acquire Brex may be as much about future-proofing as expansion.
