SoFi CEO says Trump's proposed credit card cap would drive people to personal loans, and that's good for SoFi

Core Viewpoint - The proposed one-year 10% cap on credit card interest by President Trump has sparked mixed reactions, with some industry leaders believing it could lead to a significant contraction in credit card lending and a shift towards personal loans as an alternative for consumers [1][2][4]. Group 1: Industry Reactions - SoFi CEO Anthony Noto expressed that the cap could encourage consumers to transition from credit cards to personal loans, positioning SoFi to fill the resulting credit void [1][2]. - Billionaire CEO Bill Ackman criticized the cap as a "mistake," arguing that it would lead to credit card issuers being unable to sustain profitability, resulting in millions losing access to credit cards [4][5]. - Ackman highlighted concerns that capping rates at 10% would force consumers to seek credit from less reputable sources, such as loan sharks, which would offer worse terms [5][6]. Group 2: Implications for Consumers - If the cap is enacted, it could lead to a significant reduction in credit card lending, as issuers may cancel cards for many consumers unable to meet the new profitability standards [2][4]. - The need for borrower education and underwriting discipline becomes increasingly important in this scenario, as consumers may turn to personal loans to manage their debt [2][3].