Days after President Trump proposed capping credit card interest rates at 10%, corporate executives warned that the policy would have wide-ranging ramifications and possibly hurt consumers if enacted. "If it happened the way it was described, it would be dramatic," JPMorgan Chase CEO Jamie Dimon said on the company's earnings call. JPMorgan is the nation's top credit card issuer, handling $1.34 billion in purchase volume. The company's CFO, Jeremy Barnum, added that consumers would likely face service ch ...

Trump called for a one-year cap on credit card interest rates at 10%. For years, limited regulation has allowed companies to charge high rates, and consumers have fallen further into debt. Some lawmakers have said they would pass legislation capping interest rates. Americans are racking up credit card debt, and it's costing them even more to get rid of it. It's a piece of the affordability debate that has caught the attention of both parties. In a move that has been pushed for by lawmakers acros ...

So, how bad is the credit crunch in the U.S., and would a 10% cap on interest rates help or harm American consumers?Unsurprisingly, financial institutions also have no interest, so to speak, in a 10% cap (5), with a group of major banking associations and organizations releasing a joint statement claiming the move would “reduce credit availability and be devastating for millions of American families and small businesses,” driving many “toward less regulated, more costly alternatives.”But it’s unclear how mu ...

Capital One (COF) shares plunged nearly 7% on Monday after President Donald Trump proposed capping credit card interest rates at 10% for one year. The announcement sent shockwaves through the financial services sector and raised questions about the stock's bullish Wall Street consensus. Trump caught bank executives off guard and triggered a broad selloff across the industry. Shares of major banks, including Citigroup (C), J.P. Morgan Chase (JPM), Wells Fargo (WFC), and Bank of America (BAC), dropped betwe ...

A proposed cap on credit card rates would “significantly change” JPMorgan Chase's business and harm its customers, the bank warned Tuesday, after President Donald Trump called for the policy earlier this month. “If it were to happen, it would be very bad for consumers, very bad for the economy,” JPMorgan's CFO Jeremy Barnum said Tuesday on an earnings call, adding that the bank’s card operation “would be a business that we would have to significantly change” if it came into place. “Our ‌belief is that a ...

President Donald Trump's call for a 10% cap on credit card interest rates could impact access to credit cards for many American consumers while also impacting small businesses. Trump on Friday declared he wants to impose a 10% cap on credit card interest rates to be implemented for one year starting on Jan. 20, saying he wants to prevent consumers from being "ripped off" by credit card issuers with interest rates that may exceed 20% for some borrowers. The president's proposal follows the introduction of a ...

Core Viewpoint - President Trump is advocating for a temporary cap on credit card interest rates at 10% for one year, pressuring credit card companies to comply by January 20, 2024, which could significantly impact consumers and the credit market [1][2]. Group 1: Current Credit Card Rates - The average credit card interest rate for accounts with assessed interest is currently 22.30%, a significant increase from 13.35% in mid-2016 [3]. - Credit card margins, the difference between credit card APRs and the prime rate, have increased, contributing to the rise in credit card rates [4]. Group 2: Potential Impact of the Rate Cap - A 10% interest rate cap could provide substantial savings for the 46% of American households with credit card debt, allowing them to pay down balances more quickly [5][10]. - For example, a $6,000 balance at a 22% APR would require monthly payments of $561 to pay off in a year, while at a 10% rate, payments would drop to $527, saving over $400 in interest [10]. Group 3: Long-term Consequences - Experts warn that a rate cap could lead to reduced credit availability, as issuers may tighten lending standards if they cannot charge higher rates to mitigate risk [15][14]. - A joint statement from banking industry groups indicates that a 10% cap could be devastating for many consumers who rely on credit cards [15]. Group 4: Rewards and Benefits - Limiting credit card interest rates may also lead to reduced rewards and benefits associated with credit cards, as these programs are often funded by interest fees [17][18]. - Experts suggest that banks may raise annual fees or reduce the value of rewards programs if a rate cap is implemented [18]. Group 5: Alternatives for Debt Management - Consumers are encouraged to explore balance transfer credit cards with introductory 0% APR offers as a more effective way to manage credit card debt than waiting for a potential rate cap [20][21].

JPMorgan Chase (NYSE: JPM) is in focus this morning after its chief financial officer, Jeremy Barnum, said the bank could "fight†President Trump's recently proposed cap on credit card interest rates. ...

A proposed cap on credit card interest rates will hurt U.S. consumers and the economy, JPMorgan Chase Chief Financial Officer Jeremy Barnum said on Tuesday. ...

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Dive Brief: President Donald Trump’s proposed 10% credit card interest rate cap, if it were put in place, would force JPMorgan Chase to “significantly change and cut back significantly” its credit card business, CFO Jeremy Barnum said Tuesday as the bank reported fourth-quarter earnings.  “Our belief is that actions like this will have the exact opposite consequen ...