Sen. Bernie Sanders has announced plans to introduce legislation to limit credit card interest rates to 10%, echoing a proposal put forth by former President Donald Trump during his 2016 campaign.

Sanders is urging bipartisan support for the initiative, emphasizing the urgency of addressing soaring credit card rates, which he deems exploitative and Trump has suggested needs addressing, as the Washington Examiner reports.

Sanders Revives Campaign Proposal from Trump

Sanders, an Independent senator from Vermont, is taking steps to tackle the financial burdens faced by American consumers by introducing a bill that would cap credit card interest rates at 10%. The idea was originally floated by Donald Trump during his campaign, where he suggested a temporary limit on these rates.

The legislation comes at a time when the average credit card interest rate in the U.S. has climbed to 21.76%, the highest in two decades. Many consumers, especially working-class families, struggle to keep up with these high rates, which Sanders described as “immoral.”

Trump, during a campaign stop in New York, said, “We’re going to cap it at around 10%. We can’t let them make 25% and 30%. While working Americans catch up, we’re going to put a temporary cap on credit card interest rates.”

Credit Card Rates Reach Alarming Heights

Currently, interest rates on credit cards are well above pre-pandemic levels, adding significant financial strain to many Americans. Sanders, who has long advocated for consumer protections, criticized the financial industry for exploiting those who are already struggling to make ends meet.

“It’s time we told the people on Wall Street they cannot charge the desperate working-class people who have a hard time paying their bills 25%, 30%, or 40% interest rates,” Sanders said. He has supported similar measures in the past and is now reinvigorating the effort with this legislation.

In his remarks, Sanders directly challenged Trump to follow through on his earlier campaign promise and support the bill. “During the recent campaign Donald Trump proposed a 10% cap on credit card interest rates,” Sanders said. “Great idea. Let’s see if he supports the legislation that I will introduce to do just that.”

Sanders Calls for Bipartisan Action

Despite their political differences, Sanders is optimistic about working with Trump on this issue. “If Trump, for example, follows through on his proposal to limit interest rates on credit cards to 10%, which is what he campaigned on, absolutely I will be there,” Sanders said.

While Sanders has often been critical of Trump’s policies, he sees this initiative as an opportunity for bipartisan collaboration. He believes that addressing predatory credit card rates is a pressing issue that transcends political affiliations. Sanders’ push for the legislation reflects his broader commitment to financial reforms that protect consumers. He has consistently advocated for measures to curb excessive fees and interest rates imposed by major financial institutions.

Efforts to Regulate Credit Card Fees

The Biden administration has also made attempts to alleviate financial pressures on consumers. Earlier this year, it sought to reduce credit card late fees, but those efforts were blocked by a federal judge. Sanders’ proposed cap on interest rates adds another dimension to the ongoing discussion about consumer protection.

High interest rates on credit cards have long been a contentious issue in the U.S., with critics arguing that they disproportionately affect low-income individuals. The proposed legislation seeks to address this disparity and provide relief to millions of Americans.

Sanders emphasized the importance of holding financial institutions accountable for practices that exploit vulnerable populations. He urged lawmakers from both parties to prioritize the interests of working families over those of Wall Street.

Challenges Ahead for Legislation

Although the proposed cap on credit card interest rates has garnered attention, it is likely to face significant opposition in Congress. Financial industry lobbyists are expected to push back against the legislation, arguing that it could disrupt the market and limit access to credit.

Skeptics of the proposal may also question its feasibility, particularly given the complexity of regulating financial institutions. Nevertheless, Sanders remains undeterred, calling on lawmakers to rise above partisan politics and address the urgent needs of their constituents.

“This is about fairness,” Sanders said. “The working people of this country deserve better than being charged exorbitant rates by the big banks.”

Public Response and Potential Implications

The proposal has sparked widespread debate, with supporters praising Sanders for championing a policy that could provide much-needed relief to consumers. Critics, however, worry that the cap could have unintended consequences, such as reducing access to credit for those with lower credit scores.

As the discussion unfolds, the legislation will serve as a test of lawmakers’ willingness to tackle financial inequality. Whether or not the bill passes, it has already drawn attention to the broader issue of predatory lending practices.

Sanders’ initiative underscores the importance of addressing systemic issues within the financial industry. By revisiting Trump’s campaign proposal, he aims to build a coalition of support that transcends party lines.

The coming weeks will reveal whether the proposed cap on credit card interest rates gains traction in Congress. For now, Sanders is determined to keep the issue at the forefront of the national conversation, urging lawmakers to take action on behalf of working families.