Calls for Action Come as President Trump Continues to Pay Lip Service to Signature Campaign Promise While Cost of Living Soars

February 6, 2026 | WASHINGTON, D.C. — Late yesterday, an historic and diverse coalition of civil rights, labor unions, veterans, consumer protection, and borrower advocates sent an urgent letter to leaders on the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee calling on them to advance S. 381/H.R. 1944, the 10 Percent Credit Card Interest Rate Cap Act of 2025. This bipartisan, bicameral legislation—led by Senators Sanders and Hawley and Representatives Ocasio-Cortez and Luna—would cap credit card interest rates at 10 percent for five years. The proposal is estimated to save working families $100 billion every year and provide interest savings of $899 per person on average annually. The letter, which includes more than 55 national and state organizations, including the AFT, United Food and Commercial Workers International Union (UFCW), NAACP, Hispanic Federation, Minority Veterans of America, and Consumer Federation of America can be found here.

From the letter:

“Today, workers and families across rural, suburban, and urban communities alike are struggling to make ends meet—forced to navigate the rising costs of everyday goods and services from food and gas to housing and healthcare. In January, President Trump announced that he’s calling for a 10 percent cap on credit card interest rates for one year, ‘effective January 20th.’ In response to widespread Wall Street opposition to the President’s recent announcement, Trump officials have begun to backtrack—instead promoting ‘Trump Cards’ that banks could voluntarily offer with temporary 10 percent interest rates.”

“Not only are more Americans having to lean on their credit cards to make ends meet, but more are falling behind. Today, more than 12 percent of credit card debt is 90 days or more past due. As Americans find themselves deeper in debt, credit card companies have been raking in record profits.”

“By providing billions of dollars in economic relief to working families, this legislation directly responds to the promises that candidate Donald Trump made to the American people last year. Recent polling has found that it is also incredibly popular by a jaw-dropping 8-to-1 margin among American voters across all political parties, spanning age, gender, race, and education level. It is clear: the American people support policymakers taking action to address the growing credit card crisis that is drowning millions of American families across the country in debt. We stand ready to work with your offices to ensure that this bill becomes law and that working families get the economic relief they were promised and deserve.”

Also see below for quotes from signing organizations.

Protect Borrowers Executive Director Mike Pierce said: “From day one, President Trump has governed as a banker—reversing rules that would have protected families from billions in credit card late fees, green lighting a merger that created the largest subprime credit card company in the world, and dismantling the Consumer Financial Protection Bureau. The American people want to see President Trump and Congress bring down costs and keep money in our pockets—they need to deliver for borrowers, not bankers and billionaires. I am proud to see this broad, diverse coalition come together to call on Congress to do just that.”

AFT President, Randi Weingarten said: “Educators, healthcare workers, and working families are being squeezed by skyrocketing prices and outrageous credit card interest rates that make it impossible to stay afloat,” said AFT President Randi Weingarten. “Capping rates at 10 percent is a smart, practical reform that reins in predatory lending, restores basic fairness to the marketplace, and helps workers keep more of what they earn.”

Background

The historic coalition letter comes as Americans owe an unprecedented $1.2 trillion in credit card debt, with research showing that an increasing number of working families are relying on credit cards to cover basic essentials like groceries, utilities, rent, and medical care. In response to widespread concerns over rising costs, Donald Trump called for a 10 percent cap on credit card interest rates during the 2024 campaign. 

While President Trump may have campaigned as a populist, he has governed as a banker.

During the first year of his Administration, President Trump’s policies have only fanned the flames of the affordability crisis—pushing millions further into debt while helping Wall Street banks rake in record profits. In January, President Trump renewed his calls to cap interest rates at 10 percent for one year. Facing widespread opposition from Wall Street, Trump officials have since attempted to backtrack, floating the idea of banks offering voluntary “Trump Cards” that would provide a one year 10 percent interest rate cap. In his recent speech before the World Economic Forum in Davos, Switzerland, President Trump called on Congress to enact this policy.

Background

Protect Borrowers blog/substack on Trump credit cards and delinquency rates: Trump Credit Cards? Another Bank Handout, Just in Time for TACO Tuesday (Trump Always Chickens Out)

Protect Borrowers blog on credit card bank profits amidst the affordability crisis: Trump’s Wall Street Watchdog Confirms Working People Got Slammed By Credit Card Interest and Fees

Protect Borrowers blog/substack by Brian Shearer of Vanderbilt Policy Accelerator on why interest rate caps are effective: Take-Down of the Take-Down: The Bankers are Wrong About Interest Rate Caps

Protect Borrowers blog on the popularity of government action to cap credit card interest rates: What’s the deal with credit card debt?

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About Protect Borrowers

Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice.

Learn more at protectborrowers.org or follow us on social @BorrowerJustice.