Trump’s Truth Social statement labeling rates above 10% as exploitative and harmful directly supports the argument that 20-30%+ interest violates fundamental fairness principles. Borrowers are likely to cite the President’s words as evidence of evolving public policy consensus, aligning the high rates with California’s constitutional usury cap of 10% for non-exempt loans (Article XV) and demonstrating that enforcing such interest in court would contravene broader notions of equity.
The pending 10 Percent Credit Card Interest Rate Cap Act (S.381), introduced in early 2025 and still under consideration in the Senate Banking Committee, further reinforces this momentum by proposing a temporary 10% cap and a private right for debtors to challenge and recover excessive interest and fees.
This federal attention will likely be woven into related claims, such as unfair business practices under the Unfair Competition Law when high interest has caused documented financial or emotional distress, or even as part of a mitigation-of-damages defense if the creditor pursued litigation without exploring rate adjustments amid the growing national debate.
