SEN ELIZABETH WARREN: Trump promised credit card relief, but he’s delivered nothing

President Donald Trump could save American families hundreds of dollars on credit cards, but so far, he’s been all talk and no action.

At the State of the Union, President Trump will try to spin a happy story about his failed economic agenda. During his campaign, he promised to lower costs “on day one.” He is now more than four hundred days into his second term, and his policies are forcing Americans to pay more for everything from groceries to housing and electricity. Last Friday, the Supreme Court accused him of illegally taking money from working families. And polls show that Americans think the president isn’t doing enough to lower spending.

One way Trump could lower costs quickly is to follow through on his campaign promise to put a 10% cap on credit card interest rates. This can save the average American with credit card debt nearly $900 a year. Together, families will save nearly $100 billion, giving them breathing room and strengthening the economy as a whole.

TRUMP CALLS FOR A 1-YEAR 10% CAP ON CREDIT CARD INTEREST RATES

On January 9, the president appeared ready to act. He announced that the credit card companies would no longer rip off the American people – and then humbly asked the big banks to impose a one-year, 10% credit card interest rate on Jan 20. At the time, I said that asking the credit card companies to play nice was silly, and if the president was serious, he would work to pass a bill through Congress that would bring in lower rates.

Three days later, President Trump called me personally. I had just given a speech noting that you are raising costs for families and sowing fear and chaos in our communities. I repeated my push: If the president really wants to pay credit card interest, he will exercise his power and push the bill through Congress. In our call, I delivered the same message.

While the president was depressed, the big banks went out of business to warn of ‘economic disaster’ if we hit credit card interest rates. Give me a break.

That happened six weeks ago. President Trump’s Jan. 20 has come and gone, and no one is surprised that the big banks didn’t voluntarily lower credit card rates to help American families. Instead, Trump and his budget chief, Russ Vought, have gone the other way, trying to sideline the Consumer Financial Protection Bureau, which could be used to lower credit card costs. While Trump says he wants to cap the credit card interest rate, his regulators are helping those Wall Street banks that are defrauding the American people and preventing states from protecting their citizens from high mortgage rates.

SEN BERNIE SANDERS: WE NEED TO GET CREDIT CARD INTEREST RATES TO 10%

While the president was depressed, the big banks went out of business to warn of “economic disaster” if we hit credit card interest rates. Give me a break. These are the most profitable financial institutions in the history of the world. There is no reason for them to demand 25% or 30% interest when small banks and credit unions offer the lowest credit card interest rates and still make solid profits.

Major banks make a 1.5% return on their lending typically – but on credit cards, they make a whopping 6.8% return. Credit cards also bring in and support new customers with other services. These banks can lower credit card rates and still make huge profits.

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Credit card executives love those high rates because they help finance a large portion of the salaries and bonuses of those at the top. Compensation for all major bank CEOs topped $40 million last year, with JPMorgan Chase CEO Jamie Dimon pocketing $770 million. Shareholders are also happy. Big banks paid a record $140 billion in dividends and share buybacks by 2025. Meanwhile, Americans are charged more than $150 billion a year in credit card interest.

The American people want to be free – and the Democrats are ready. After the president called me, I repeatedly reached out to his chief of staff, Susie Wiles, to share ideas about how to design an emergency measure of 10% of the rate that prevents banks from retaliating by closing accounts, reducing credit lines or reducing rewards. I also explained how we can move to a permanent balance, so credit card companies can’t go back to ripping people off after one year.

But after six weeks, there is no agreement to help the Americans. We don’t need more speeches. We need an agreement on the law and a commitment from the president to really fight for it.

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Let’s pass a bill to cap credit card interest. The Senate Banking Committee could hold a hearing in March and get the bill to the president’s desk this spring.

No more delays. It’s time to deliver for America’s families.

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