Reps Anna Paulina Luna and AOC Team Up to Push Credit Card Bill

A bipartisan push led by Reps. Anna Paulina Luna (R-Fla.) and Alexandria Ocasio-Cortez (D-NY) aims to cap credit card interest rates at 10%, a proposal previously endorsed by President Trump. Critics warn that such a cap could severely limit access to credit, hurting millions of Americans.

Key Facts:

Reps. Luna and Ocasio-Cortez introduced legislation Friday to cap credit card interest rates at 10%.
The average credit card interest rate is currently 28.71%, nearly three times the proposed cap.
Similar legislation has been pushed in the Senate by Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.).
The last time credit card rates neared 10% was during the 2008 financial crisis, when they dipped to 11.88%.
Critics, including the American Bankers Association, argue a cap would reduce credit access for millions.

The Rest of The Story:

The proposed bill seeks to limit credit card interest rates, arguing that high rates trap working-class Americans in a cycle of debt.

Luna and Ocasio-Cortez claim financial institutions are exploiting consumers, especially during economic hardship.

However, economists and industry groups argue that setting an artificial cap would disrupt the market.

A similar cap in Oregon and Chile led to a sharp decline in available credit.

Studies indicate that while a moderate cap—such as 30%—could have some benefits, a 10% ceiling is too restrictive and could lead to lenders pulling back on offering credit altogether.

Trump, who originally floated the idea during his 2024 campaign, has not signaled whether he will push for the cap now that he is back in office.

The legislation currently lacks momentum in Congress, making its passage uncertain.

Do you support this move?
Yes or No?

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— Farm Girl Carrie 👩‍🌾 (@FarmGirlCarrie) March 10, 2025

Commentary:

At first glance, a 10% cap on credit card interest rates sounds like a win for consumers, but in reality, it would cripple the industry and hurt the very people it aims to help.

Credit card issuers rely on interest rates to manage risk—particularly for borrowers with lower credit scores.

By forcing lenders to issue credit at artificially low rates, banks will simply stop lending to those who don’t have near-perfect credit.

The result?

Fewer Americans will have access to credit cards, pushing them toward predatory payday loans or other costly alternatives.

The free market determines interest rates based on risk.

If the government steps in and dictates rates, banks will have to offset the losses elsewhere—through higher fees, reduced rewards programs, or stricter qualification requirements.

This could make it nearly impossible for middle-class Americans and small business owners to get the credit they need.

Additionally, capping interest rates doesn’t address the root issue: why so many Americans rely on credit cards to stay afloat.

Instead of regulatory price controls, lawmakers should focus on policies that promote economic growth, reduce inflation, and create an environment where people don’t need to rack up debt just to survive.

This bill is a bipartisan mistake.

It’s an attempt at economic populism that ignores basic financial principles.

If passed, it would distort the market and restrict credit access, punishing responsible borrowers while failing to solve the deeper economic problems at hand.

The Bottom Line:

Capping credit card interest rates at 10% may seem like a consumer-friendly move, but it would likely backfire by reducing credit access for millions of Americans.

Banks cannot afford to lend at unsustainable rates, meaning only the most creditworthy borrowers would be approved.

This bill is a case of bad economics wrapped in good intentions—and Congress should leave the market alone.