Senator Bernie Sanders Urges 10% Cap on Credit Card Interest Rates to Combat Wall Street Usury
WASHINGTON, D.C. — Senator Bernie Sanders has renewed his call for a permanent cap on credit card interest rates, urging Congress to limit rates to 10% as a measure against what he describes as “usury” by major banks. Sanders highlighted the stark contrast between the average credit card interest rate of 24% charged to consumers and the approximately 4% borrowing cost these banks pay to the Federal Reserve.
In a statement echoing President Trump’s recent remarks, Sanders condemned the current system that allows Wall Street financial giants to reap enormous profits at the expense of working families. “We live in a nation of unprecedented wealth inequality,” Sanders said, pointing out that while millions of Americans struggle with basic expenses such as housing and healthcare, the wealthiest individuals continue to amass staggering fortunes. According to Sanders, this disparity is exacerbated by a financial sector that has become increasingly consolidated and powerful.
Just four Wall Street firms now manage around $38 trillion in assets, surpassing the total U.S. annual GDP, and control major stakes in over 95% of S&P 500 companies. Furthermore, five leading financial institutions — JPMorgan Chase, Bank of America, American Express, Citigroup, and Capital One — dominate nearly 70% of all credit card transactions, with Visa and Mastercard processing over 80% of these transactions. This concentration, Sanders argues, enables these entities to impose exorbitant interest rates on consumers.
Sanders’ proposal aligns with the broader push for consumer protections aimed at curbing predatory lending practices. The senator’s call comes amid growing scrutiny of credit card companies’ pricing strategies and the impact on financially vulnerable Americans. The Federal Reserve data confirms that while banks borrow at low rates, the average consumer faces credit card interest rates that can exceed 20%, often leading to spiraling debt.
Consumer advocates have long criticized the credit card industry for its high fees and interest rates, which disproportionately affect low- and middle-income households. By capping interest rates at 10%, Sanders argues, the government could significantly reduce the financial burden on millions of Americans and promote fairer lending practices.
President Trump’s concurrence with Sanders on this issue is notable given their differing political backgrounds. Trump has publicly supported measures to limit credit card interest rates, emphasizing the need to protect consumers from what he describes as “extortion” by financial institutions. This bipartisan agreement underscores the widespread concern about the credit card industry’s impact on economic inequality.
Legislative efforts to regulate credit card interest rates have faced challenges in the past, with financial industry lobbying often stalling reform. However, the growing public awareness of wealth disparities and financial hardships has renewed momentum for change. The Consumer Financial Protection Bureau continues to monitor credit card practices and enforce regulations aimed at safeguarding consumers.
As discussions unfold in Congress, Sanders and other advocates emphasize that addressing credit card interest rates is a critical step toward ensuring economic justice. They argue that without intervention, the cycle of high-interest debt will continue to trap millions of Americans, widening the gap between Wall Street profits and everyday financial realities.
For more information on credit card interest rates and consumer protections, visit the Federal Deposit Insurance Corporation and Consumer Financial Protection Bureau websites. These agencies provide resources and guidance for consumers navigating credit and debt management.
Senator Sanders’ call to action highlights the urgent need for policy solutions that balance the scales between financial institutions and the American public, aiming to foster a fairer and more equitable economic landscape.
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