Push for credit card rate cap

At 11, a push to lower credit card interest rates could save Americans billions of dollars. President Trump wants to cap interest rates at 10 percent, although financial experts warn the plan could backfire, leaving millions without credit cards. Fox 13's Blake Devine is in our control room with the latest. Blake, how could this impact credit card holders here at home? Well, Haley, a possible 10% cap on credit card interest rates could save families hundreds of dollars. The catch? Banks could start cutting credit limits or closing accounts altogether. Nationwide, most Americans pay credit card interest rates above 20%. For example, if you owe $1,000 on your monthly credit card bill at 20% interest, that's about $17 in interest for For just one month, President Trump's proposal would cut those rates down. to 10 percent for one year. A Vanderbilt University study estimates Americans could save 100 billion dollars annually, although banks could respond by raising fees or eliminating credit card rewards. We spoke with the CEO of Fund and Grow. It's a financial consulting firm in Spring Hill. He believes this could come at a cost to credit card holders. If they were. To lower the rate to 10%, banks would be forced to cut off the consumers with lower credit scores. It would be a bloodbath. We're putting a one year cap at 10%, Ten percent. and that's it, they know it. They've really abused the public, the credit card companies have totally abused, I'm not gonna let it happen. Now, keep in mind, Americans now owe a record $1.29 trillion in credit card debt. That's up $52 billion from just a year ago. And for now, this proposal still needs congressional approval before any changes can take effect. Haley. Blake, how could the recent results in the midterms impact the proposal? Absolutely, Haley. So come January, Democrats are set to take control of both the House and Senate. Senator Elizabeth Warren has said she's ready to work with the president to pass this 10 percent cap, although still no timetable on a potential vote. All right. Blake Devine reporting tonight. Blake, thank you.