Government Watchdog Criticizes Proposed Credit Card Interest Rate Caps

FOR IMMEDIATE RELEASE

Contact: Kara Zupkus (224)-456-0257

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance slammed President Trump’s attempts to restrict credit availability to millions of struggling households. On January 9, the President posted on Truth Social that he is “calling for a one year cap on Credit Card Interest Rates of 10%” effective January 20 to prevent Americans from being “ripped off” by credit card companies. The President further stated that credit card companies would be in “violation of the law” if they charge interest rates of more than 10 percent after January 20.

David Williams, President of the Taxpayers Protection Alliance, called for the White House and Congress to reject interest rate caps:

“Millions of Americans rely on credit cards and loans to pay their bills on time, expand their businesses, and support their loved ones. President Trump’s illegal proposal would pull the rug out from under them and make it far more difficult for struggling households to get by. According to the best estimates, 14 million Americans would see credit access disrupted or eliminated altogether because of the interest rate cap. Only Americans with exemplary credit scores will have access to funds. Meanwhile, taxpayers will have to pay for the added bureaucracy needed to enforce this order. Taxpayers and consumers will pay the price for this dubious dictate.  

“History shows that, when the government makes legal lending impossible, criminals fill the void. The Mafia and organized crime are still very active across the country, and these criminals make a killing—literally—by doling out high-interest-rate loans. Cash-strapped individuals and businesses with terrible credit histories turn to mafiosos as a last resort, with the catch of sky-high interest rates and some serious knee-breaking for enforcement. Interest rate caps will result in broken knees and concrete shoes, not affordability.

“Instead of capping interest rates, President Trump and Congress should work together and end red tape that makes it difficult for lenders to extend a helping hand to consumers. This would be a far better alternative to onerous and illegal witch hunts against credit card companies.”