Sen. Elizabeth Warren (D-Mass.) has accused the acting director of the Consumer Financial Protection Bureau (CFPB) of undermining President Donald Trump‘s push to lower credit card costs.
Warren Slams CFPB Over Credit Card Fees
Warren alleged that the CFPB, led by acting Director Russell Vought, has taken actions that run counter to Trump’s efforts to make credit cards more affordable, reported CNBC on Friday, citing a letter obtained.
Warren said the CFPB has weakened consumer protections by dropping limits on credit card late fees, backing lenders in deception lawsuits, and pausing enforcement, moves she argues are “insubordinately disregarding” Trump’s objectives.
Warren called on Vought to restore the $8 cap on credit card late fees, saying it would save Americans more than $10 billion a year. She also urged stronger enforcement against deceptive deferred-interest promotions, stricter oversight of interest rate hikes, and an end to bait-and-switch rewards practices.
Credit Card Rate Cap Debate Intensifies
This development comes after Trump’s call for U.S. banks to voluntarily cap credit card interest rates at 10% for a year. Earlier this month, Trump contacted Warren to discuss working together on capping credit card interest rates. Warren welcomed the idea but noted he has not yet taken concrete action, despite their long-standing political clashes.
Previously, the Student Borrower Protection Center and the Consumer Federation of America had estimated that the rollback of CFPB actions by the Trump Administration since February could cost Americans billions annually, including $15 billion from scrapped Obama and Biden-era fee caps and $3 billion tied to dropped enforcement cases against major banks like JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Capital One (NYSE:COF).
Meanwhile, experts told Benzinga that Trump’s proposed one-year 10% cap on credit card interest rates, though consumer-friendly in appearance, could significantly alter credit access, rewards programs and related industries. They caution it may create a “K-shaped” financial impact, benefiting premium customers while limiting options for others.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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