AOC and GOP Rep. Anna Paulina Luna Say ‘No Más’ to 21% Credit Card Interest
In a political move no one saw coming, Rep. Alexandria Ocasio-Cortez (D-NY) and Rep. Anna Paulina Luna (R-FL) are putting their differences aside to take on credit card interest rates. The two Latinas are co-sponsoring a new bill that would cap credit card interest rates at 10%, a significant drop from the current average of around 21%, according to the St. Louis Fed. “Credit cards with high interest rates regularly trap working people in endless cycles of debt,” AOC said in a press release. “At a time when families are struggling to make ends meet, we cannot allow big banks to shake down our communities for profit.”
Luna echoed the sentiment, saying, “For too long, credit card companies have abused working-class Americans with absurd interest rates, trapping them in an almost insurmountable amount of debt.”
What AOC’s Credit Card Interest Cap Bill Proposes
The legislation, officially known as H.R.1944, aims to amend the Truth in Lending Act by enforcing a maximum credit card interest rate of 10%. If passed, the cap would last until January 1, 2031. The move aligns with a campaign promise from President Donald Trump, who pledged to cap credit card interest rates at 10% while on the campaign trail in 2024.
The bill is also being pushed in the Senate by an unlikely duo—Sen. Bernie Sanders (I-VT) and Sen. Josh Hawley (R-MO), who introduced similar legislation (S.381) last month.
Why Credit Card Interest Rates Are Such a Big Deal
According to New York Fed data, as of December 2024, Americans held a staggering $1.21 trillion in credit card debt, marking a $45 billion increase from the previous quarter. Even worse, 7.18% of U.S. credit card debt is in serious delinquency, putting millions at risk of damaged credit scores, financial instability, and collections.
In an economy where working-class Americans are already struggling to keep up with inflation, skyrocketing interest rates are making it even harder to escape debt. AOC and Luna’s proposal aims to provide some relief to consumers caught in this financial trap.
The Pushback: What Critics Say About AOC’s Bill
While the proposed cap could help millions of Americans, not everyone is on board. Financial experts argue that capping credit card interest rates could make it harder for high-risk consumers to get credit, potentially pushing them toward more predatory lending options, like payday loans.
“If you are forced to cap [APRs for] those with the highest interest rates, it would no longer make sense for the issuer to even offer them a product,” John Cabell, managing director of payments intelligence at J.D. Power, told Fortune.
The American Bankers Association, along with 52 state banking groups, also warned that interest rate caps often lead to credit rationing, meaning fewer people—especially those with lower credit scores—will have access to credit.
The Political Implications: AOC and Luna’s Unlikely Alliance
The bill has raised eyebrows, not just for its policy implications but for the unlikely partnership behind it. AOC, a self-described democratic socialist, and Luna, a staunch conservative and member of the House Freedom Caucus, are rarely on the same side of any issue. Yet, when it comes to tackling predatory lending, both lawmakers found common ground.
Luna responded to a post on X (formerly Twitter) that called her alliance with AOC “strange bedfellows,” saying, “I would argue it isn’t strange at all. Most people agree insane credit card interest rates are predatory.”
Their bipartisan effort could help rally support for the bill in a deeply divided Congress. However, whether it has enough momentum to pass remains uncertain.
What’s Next for AOC’s Credit Card Interest Cap Bill?
The bill has been referred to the House Committee on Financial Services, where it will be debated before potentially moving forward in Congress.
For now, the proposal is generating a heated discussion about financial fairness, corporate power, and whether a 10% cap is the right solution to America’s growing credit card debt crisis.
One thing is clear: AOC and Luna are making waves, proving that even in today’s polarized political climate, some issues can still bring both sides together.
