SEN ELIZABETH WARREN: Trump promised bank card reduction, however delivers nothing

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President Donald Trump might save American households lots of of {dollars} on bank cards, however to this point, he’s been all discuss and no motion.

On the State of the Union, President Trump will attempt to spin a cheerful story about his failed financial agenda. Throughout his marketing campaign, he promised to decrease prices "on day one." He's now greater than 4 hundred days into his second time period, and his insurance policies are forcing Individuals to pay extra for the whole lot from groceries to housing and electrical energy. Final Friday, the Supreme Court docket rebuked him for illegally taking cash from working households. And polls present the American individuals assume the president is just not doing sufficient to decrease prices.

A method Trump might decrease prices shortly is to observe via on his marketing campaign promise to place a ten% cap on bank card rates of interest. This might save the typical American with bank card debt about $900 a yr. Collectively, households would save roughly $100 billion, giving them some respiration room and strengthening the economic system total.

TRUMP CALLS FOR 1-YEAR 10% CAP ON CREDIT CARD INTEREST RATES

On Jan. 9, the president appeared poised to behave. He introduced that bank card corporations will not rip off the American individuals — after which he politely requested the largest banks to place in place a one-year, 10% cap on bank card rates of interest by Jan. 20. On the time, I mentioned that asking bank card corporations to play good is foolish, and if the president was critical, he’d work to cross a invoice via Congress that might ship decrease charges.

Three days later, President Trump referred to as me himself. I had simply given a speech noting that he's driving up prices for households and sowing terror and chaos in our communities. I repeated my push: If the president actually needed to cap bank card rates of interest, he would use his leverage and push a invoice via Congress. On our telephone name, I delivered the identical message.

Whereas the president dawdles, the large banks are popping out of the woodwork to warn of an ‘financial catastrophe’ if we cap bank card rates of interest. Give me a break.

That was six weeks in the past. President Trump’s Jan. 20 deadline has come and gone, and nobody is shocked that the large banks haven't voluntarily minimize bank card charges to assist American households. As a substitute, Trump and his price range chief, Russ Vought , have moved in the wrong way, making an attempt to sideline the Shopper Monetary Safety Bureau, which might be used to convey down bank card prices. Whereas Trump claims he needs a bank card rate of interest cap, his personal regulators are serving to out these exact same Wall Road banks which can be ripping off Individuals and blocking states from defending their residents from sky-high loans.

SEN BERNIE SANDERS: WE NEED TO CAP CREDIT CARD INTEREST RATES AT 10%

Whereas the president dawdles, the large banks are popping out of the woodwork to warn of an "financial catastrophe" if we cap bank card rates of interest. Give me a break. These are probably the most worthwhile monetary establishments within the historical past of the world. There isn't a motive for them to demand 25% or 30% rates of interest when smaller banks and credit score unions are providing a lot decrease bank card rates of interest and are nonetheless making stable earnings.

The massive banks make a few 1.5% return on their lending usually — however for bank cards, they make a whopping 6.8% return. Bank cards additionally usher in and maintain new clients for different providers. These banks might decrease bank card charges and nonetheless be wildly worthwhile.

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Bank card CEOs love these excessive charges as a result of they assist finance an enormous chunk of the salaries and bonuses for these on the high. Compensation for each large financial institution CEO topped $40 million final yr, with JPMorgan Chase CEO Jamie Dimon pocketing a tidy $770 million. Shareholders are comfortable, too. Huge banks paid out a report $140 billion in dividends and share buybacks in 2025. In the meantime, the American individuals have been charged greater than $150 billion yearly in bank card curiosity.

Individuals need reduction — and Democrats are prepared. After the president referred to as me, I reached out repeatedly to his chief of workers, Susie Wiles , to share concepts about methods to design an emergency 10% fee cap that prohibits banks from retaliating by shutting down accounts, decreasing credit score traces or devaluing rewards. I additionally defined how we might transition to a everlasting fee cap, so bank card corporations can’t go proper again to tearing individuals off after one yr.

However after six weeks, there’s no deal to assist the American individuals. We don’t want extra speeches. We'd like an settlement on laws and a dedication from the president to truly combat for it.

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Let’s cross a invoice to cap bank card rates of interest. The Senate Banking Committee might maintain hearings in March and get a invoice to the president’s desk this spring.