Anna Paulina Luna / CSPAN
Rep. Anna Paulina Luna (R-FL) has found an unlikely ally in her bid to take on credit card companies.
The second-term Congresswoman has worked together with Rep. Alexandria Ocasio-Cortez (D-NY) to ban credit card companies from charging more than 10 percent interest.
Together, the two women introduced legislation on Friday that would see this rule come into effect.
“For too long, credit card companies have abused working-class Americans with absurd interest rates, trapping them in an almost insurmountable amount of debt,” Luna said in a statement.
“We need a fair solution – and that means getting rid of the status quo and putting a reasonable cap on interest rates,” she continued.
“Credit cards with high interest rates regularly trap working people in endless cycles of debt.”
”At a time when families are struggling to make ends meet, we cannot allow big banks to shake down our communities for profit.”
For too long, credit card companies have abused working class Americans with absurd interest rates, trapping them in an almost insurmountable amount of debt.
We need a fair solution — and that means getting rid of the status quo and putting a reasonable cap on interest rates. pic.twitter.com/lBeBbQwmAx
— Rep. Anna Paulina Luna (@RepLuna) March 8, 2025
AOC added:
Credit cards with high interest rates regularly trap working people in endless cycles of debt. At a time when families are struggling to make ends meet, we cannot allow big banks to shake down our communities for profit.
During his campaign, President Trump pledged to cap credit card interest rates at 10%. We’re making that pledge more than a talking point by introducing legislation to protect working people from remaining trapped under mountains of debt.
It is not the first time that such bipartisan legislation has been put forward, and Donald Trump repeatedly endorsed the idea during his presidential campaign.
Republican Sen. Josh Hawley and socialist Sen. Bernie Sanders have previously introduced similar legislation, most notably a 2019 bill that would have capped rates at 15%.
The current average interest rate is nearly their proposed limit, according to Forbes.
While rates have been high for many years, they were particularly exacerbated by the response to the coronavirus pandemic and the high inflation during Joe Biden’s presidency.
Critics of the proposal argue that while capping credit card interest rates may seem like a way to protect consumers from excessive fees, it comes with significant downsides.
By limiting how much lenders can charge, banks and credit card companies may become more selective about who they approve, making it harder for people with low credit scores or no credit history to access credit.
Instead of offering lower interest rates, banks could also introduce more fees or reduce rewards programs to make up for lost revenue.
There is also the risk that if traditional credit becomes harder to access, consumers may turn to riskier alternatives like payday loans, which often have even higher costs.
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