Trump’s 10% Credit Card Interest Rate Cap Proposal Bolsters California Borrowers’ Unconscionability Counterclaims In Debt Lawsuits

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In many cases, simply raising these points in a well-drafted counterclaim prompts creditors to offer substantial concessions during settlement talks rather than risk a trial that could set unfavorable precedent.

What’s Next

Consult a California consumer protection attorney as soon as possible—time limits are strict, and many offer free initial consultations to evaluate your specific situation.

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Sources Section

·       Trump’s Truth Social Post (January 2026) — Direct announcement calling for 10% cap effective January 20, 2026.

·       10 Percent Credit Card Interest Rate Cap Act (S.381) (Introduced February 4, 2025; pending in Senate Banking Committee) — Temporarily caps rates at 10%; allows debtor challenges and forfeiture of interest on violations.

·       De La Torre v. CashCall, Inc. (California Supreme Court, 2018) — Confirmed high interest rates can render consumer loans unconscionable under Financial Code § 22302.