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In an extremely rare bipartisan move, two Senate lawmakers who are usually at odds over everything have joined forces to introduce a bill capping credit card interest rates at 10%.
Some shit you should know before you read: Many Americans are drowning in record-high credit card debt, with total outstanding balances reaching $1.17 trillion in 2023. The average US household carrying credit card debt owes over $21,000, making it increasingly difficult for families to keep up with rising costs of living. In 2022 alone, credit card companies generated $130 billion in interest and fees, profiting heavily from high interest rates that often exceed 25%. Over the past five years, major credit card issuers have reported massive earnings—Visa made $67.5 billion in profits, Mastercard $44.3 billion, and American Express $33.8 billion—while their top executives took home tens of millions in compensation.

What’s going on now: In an announcement, Senator Bernie Sanders (I-VT) and Senator Josh Hawley (R-MO) introduced bipartisan legislation to cap credit card interest rates at 10%, aiming to protect consumers from what they call predatory lending practices. The proposed cap would remain in effect for five years, providing temporary relief to millions of Americans struggling with skyrocketing interest charges. This initiative closely aligns with a similar proposal pitched by President Donald Trump on the campaign trail, where he pledged to limit credit card interest rates to 10% to ease financial burdens on working-class families.
The push for reform comes as credit card delinquency rates have climbed to 3.23%, the highest level since the aftermath of the 2008 financial crisis. With millions of Americans falling behind on payments, Sanders and Hawley argue that excessive interest rates—averaging 28.6%—are trapping consumers in a cycle of debt while banks reap record profits. By capping rates, the senators hope to curb what they describe as “extortion” by major financial institutions and provide families with much-needed financial relief.
In a statement, Senator Bernie Sanders said, “During the campaign, President Trump pledged to cap credit card interest rates at ten percent. Today, I am proud to be introducing bipartisan legislation with Senator Hawley to do just that. When large financial institutions charge over 25 percent interest on credit cards, they are not engaged in the business of making credit available. They are engaged in extortion and loan sharking. We cannot continue to allow big banks to make huge profits ripping off the American people. This legislation will provide working families struggling to pay their bills with desperately needed financial relief.”
Senator Hawley said, “Working Americans are drowning in record credit card debt while the biggest credit card issuers get richer and richer by hiking their interest rates to the moon. It’s not just wrong, it’s exploitative. And it needs to end. Capping credit card interest rates at 10%, just like President Trump campaigned on, is a simple way to provide meaningful relief to working people. Let’s do it.”