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• U.S. Reps. Alexandria Ocasio-Cortez and Anna Paulina Luna have teamed up on bipartisan legislation to cap credit card interest rates at 10%.
• The legislation aims to protect consumers from high interest rates, which have reached an all-time high of nearly 23%.
• The bill has garnered support from across the aisle, including Sens. Josh Hawley and Bernie Sanders who introduced a companion bill in the Senate.

Quick Brief

2-Minute Digest

Essential Context

In a rare display of bipartisan cooperation, Rep. Alexandria Ocasio-Cortez (D-NY) and Rep. Anna Paulina Luna (R-FL) have joined forces to introduce legislation that would cap credit card interest rates at 10%. This move is a response to the escalating financial burden on consumers, with average credit card interest rates soaring to nearly 23%, almost double the rates in 2013.

Core Players

• Alexandria Ocasio-Cortez – U.S. Representative from New York (D-NY)
• Anna Paulina Luna – U.S. Representative from Florida (R-FL)
• Josh Hawley – U.S. Senator from Missouri (R-MO)
• Bernie Sanders – U.S. Senator from Vermont (I-VT)

Key Numbers

• 10% – Proposed cap on credit card interest rates
• 23% – Current average credit card interest rate
• 2013 – Year when average credit card interest rates were roughly half the current rate
• 2031 – Year when the legislation would take effect if passed

Full Depth

Complete Coverage

The Catalyst

The high credit card interest rates have become a significant financial burden for many Americans. “Credit cards with high interest rates regularly trap working people in endless cycles of debt,” Ocasio-Cortez noted. This concern has brought together lawmakers from different political backgrounds to seek a solution.

Luna emphasized, “For too long, credit card companies have abused working-class Americans with absurd interest rates, trapping them in an almost insurmountable amount of debt.”

Inside Forces

This bipartisan effort is notable given the historical political differences between Ocasio-Cortez and Luna. Just four years ago, Luna campaigned on taking on Ocasio-Cortez, highlighting the significance of their current collaboration. The legislation also aligns with a campaign promise made by President Trump to cap credit card interest rates at 10%.

Power Dynamics

The partnership between Ocasio-Cortez, Luna, Hawley, and Sanders demonstrates that consensus can be achieved on certain issues, particularly those affecting consumers’ wallets. This cooperation transcends typical party lines and indicates a willingness to address financial inequities.

Ocasio-Cortez mentioned Trump’s campaign promise, underscoring the bipartisan nature of the issue: “During his campaign, President Trump pledged to cap credit card interest rates at 10%. We’re making that pledge more than a talking point by introducing legislation to protect working people from remaining trapped under mountains of debt.”

Outside Impact

The legislation, if passed, would have a significant impact on consumer finance. It would prevent credit card companies from charging exorbitant interest rates and ensure that any fees not considered finance charges do not exceed the total amount of finance charges assessed.

However, the relief would not be immediate; the cap would not take effect until 2031, nearly six years from the introduction of the legislation.

Future Forces

The success of this legislation could pave the way for more bipartisan efforts to address consumer financial issues. It may also influence other areas of financial regulation, such as student loans and mortgage rates.

Future actions might include stricter regulations on late fees, hidden charges, and other practices that burden consumers with debt.

Data Points

• March 7, 2025 – Date the legislation was announced
• 2031 – Year the legislation would take effect if passed
• 23% – Current average credit card interest rate
• 2013 – Year when average credit card interest rates were roughly half the current rate