SEN ELIZABETH WARREN: Trump promised credit card relief, but delivers nothing

President Donald Trump could save American families hundreds of dollars on credit cards, but so far he’s all talk and no action.

At the State of the Union, President Trump will try to tell a happy story about his failed economic agenda. During his campaign, he promised to cut costs “on day one.” He is now more than four hundred days into his second term, and his policies are forcing Americans to pay more for everything from food to housing to electricity. Last Friday, the Supreme Court reprimanded him for illegally taking money from working families. And polls show that the American public thinks the President is not doing enough to cut costs.

One way Trump can quickly cut costs is to make good on his campaign promise to put a 10% cap on credit card interest rates. This could save the average American with credit card debt nearly $900 a year. Families will collectively save nearly $100 billion, giving them some breathing room and strengthening the economy overall.

TRUMP WANTS 1-YEAR 10% COVERAGE ON CREDIT CARD INTEREST RATES

On January 9, the president appeared ready to act. He declared that credit card companies would no longer rip off the American people, and then politely asked the largest banks to impose a one-year 10% cap on credit card interest rates by January 20th. At the time, I said it was foolish to ask credit card companies to behave well, and that if the president was serious, he would try to pass a bill through Congress that would provide lower interest rates.

Three days later, President Trump called me himself. I had just given a speech stating that he was increasing the costs for families and sowing terror and chaos in our societies. I repeated my insistence: If the president really wanted to cap credit card interest rates, he would use his power and pass a bill through Congress. I conveyed the same message in our phone conversation.

While the president stalls, major banks are stepping out to warn of “economic disaster” if we cap credit card interest rates. Give me some time.

This was six weeks ago. President Trump’s deadline is January 20 It came and went, and no one was surprised that major banks didn’t voluntarily lower credit card rates to help American families. Instead, Trump and budget chief Russ Vought moved in the opposite direction, trying to bypass the Consumer Financial Protection Bureau, which could be used to lower credit card costs. While Trump claims to want credit card interest rate caps, his own regulators are aiding the same Wall Street banks that rip off Americans and prevent states from protecting their citizens from sky-high loans.

YOU BERNIE SANDERS: WE NEED TO INCREASE CREDIT CARD INTEREST RATES TO 10%

While the president stalls, major banks are stepping out to warn of an “economic disaster” if we cap credit card interest rates. Give me some time. These are the most profitable financial institutions in world history. There’s no reason for them to charge 25% or 30% interest rates when smaller banks and credit unions offer much lower credit card interest rates and still make solid profits.

Large banks generally earn around 1.5 percent return on their loans; but they get a whopping 6.8 percent return on credit cards. Credit cards also bring new customers for other services and ensure the continuity of these customers. These banks can lower credit card interest and still be extremely profitable.

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Credit card CEOs love these high rates because they help fund a large portion of the salaries and bonuses of those at the top. The salary of JPMorgan Chase CEO and every major bank CEO exceeded $40 million last year Jamie Dimon He pocketed $770 million. Shareholders are also satisfied. Major banks paid a record $140 billion in dividends and share buybacks in 2025. Meanwhile, the American public was charged more than $150 billion annually in credit card interest.

Americans want help and Democrats are ready. After the president called me, I reached out to his chief of staff, Susie Wiles, multiple times to share ideas about how to design an emergency 10% interest rate cap that would prohibit banks from retaliating by closing accounts, reducing credit limits, or devaluing rewards. I also explained how we could move to a permanent rate cap so that credit card companies can’t immediately go back to ripping people off after a year.

But after six weeks, there is no deal to help the American people. We don’t need to talk any more. We need an agreement on legislation and a commitment from the president to actually fight for it.

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Let’s pass the bill that puts an upper limit on credit card interest. The Senate Banking Committee could hold hearings in March and get a bill to the president’s desk this spring.

No more delays. It’s time to provide relief to American families.

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