22 Minutes on the Proposed 10% Credit Card Interest Rate Cap

22 Minutes on the Proposed 10% Credit Card Interest Rate Cap

From 22 Minutes in Lending: Conversations about Credit Unions, Fintech, and Future of Finance by LendKey: Lending Made Simple

February 25, 2026 · 27 min

About this episode

This episode discusses the implications of a proposed 10% credit card interest rate cap on credit unions and their members.

While lawmakers debate a proposed 10% credit card interest rate cap, credit unions are asking what this could mean for access to credit, profitability and member relationships. In this episode, credit card expert David Shipper of Datos Insights takes a deep dive into the potential impact of legislative rate caps, what could happen to credit card programs, and what credit union leaders should be doing now. Key Takeaways 02:11: David explains that the bill is extremely blunt: a flat 10% APR cap on all credit card interest, with no distinctions for cash advances, default rates, or risk tiers. 04:50: David outlines how a cap would reduce approvals, shrink credit lines, and push consumers toward worse alternatives like payday loans or BNPL. 09:38: David agrees that credit union leaders are right to be concerned: many programs could become unprofitable, leading to fewer approvals and higher fees. 11:46: Despite the risks, David argues credit unions could gain market share because their rates already average around 12–13%. 16:21: David warns that state-by-state caps would create a patchwork of rules, disadvantaging local credit unions while national banks export higher rates…

People in this episode

Guest: David Shipper

Topics covered

  • credit card interest rate cap
  • impact on credit unions
  • legislative changes
  • access to credit
  • profitability
  • member relationships

Keywords

  • credit card
  • interest rate cap
  • credit unions
  • legislation
  • profitability
  • consumer alternatives
  • digital applications

Mentioned in this episode

Organizations: Datos Insights, credit unions, national banks, Americas Credit Unions

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