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President Donald Trump threatened credit card companies with a serious legal action, which may be taken against them in case they do not reduce the interest rates to 10% by January 20, 2026. Trump accuses in a brief video recording of major issuers preying on consumers with extremely large APRs, up to nearly 30 percent. He packaged the move as consumer protection and it was quite evident that he is planning to impose some compliance.
Populist Message Attacks Banks and Issuers
The rhetoric of Trump is tending towards a populist rhetoric, polying the banks and credit card networks as victimizing the ordinary Americans. He highlighted that the root cause of the high interest rates is that it cripples the households in the long-term debt and that it would halt what he has termed as unjust financial practices. The comments are in a time of increased public anger at the cost of borrowing and low purchasing power.
Pushback in the Banking Industry Swells
Large financial institutions have revolted against the suggestion, claiming that a strict limit on the interest rates would narrow the limited credit access. Issuers claim that risky borrowers can be either locked out, or charged higher fees in other areas. Another criticism of Trump by critics is that he failed to explain how a legal mechanism and enforcement structure would enforce the proposed cap.
Importance of the Timing to the Consumers
This is announced when credit card debts in the United States are at an all-time low and the average APR is more than 20 percent. Although the temporary limit would only offer a short-term solution, millions of households have revolving balances in their hands, which would be relieved at least. Regardless of the proposal becoming law or political pressure, it has already rekindled debate on usury laws, consumer protection and future of credit pricing in the U.S.
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