Trump warns of ‘very severe things' if credit card companies fail to lower interest rates to 10% by January 20

Days after announcing his plans to impose a 10% cap on credit card interest rates, US President Donald Trump on Sunday warned that credit card companies would be violating the law and threatened consequences if they failed to implement the same by January 20.

Speaking to reporters who asked what happens after 20 January if credit card companies continue to charge over 10% interest rates, Trump said, “then they are in violation of the law.”

He warned that credit card companies will face “very severe things” if they do not lower the interest rates to 10%.

“I want a cap on credit card interest rates because some of them are 28 — almost 30%. People don't know they're paying 30% (credit card interest rates),” he said.

Trump's warning comes even as legal and financial observers said such a move would require new legislation from Congress to take effect.

“The people out there are working, and they have no idea that they're paying 30%. We are putting a one-year cap at 10% and they know it. They (credit card companies) have really abused the public. I am not going to let it happen,” the US President said.

Trump calls for 10% credit card interest

In a Truth Social post on Friday night, Donald Trump announced a one-year cap on credit card interest rates, saying that the companies must charge a maximum of 10%. He stated that the new rates will take effect on 20 January.

Trump's announcement comes at a time when the US is preparing for its midterm election. Trump has told his Republican aides that if they lose the midterm polls in November, he will be impeached.

"Please be informed that we will no longer let the American Public be "ripped off" by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY! Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%. Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration," the US President wrote in his post.

Trump is under pressure to reduce the cost of living as promised during his 2024 election campaign amid stubborn inflation.

The banking industry has opposed Trump's proposal to reduce the credit card interest rates to 10%.

“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives," the American Bankers Association and allied groups said in a joint statement.