Simpson warns an arbitrary credit card rate cap could restrict credit access

While acknowledging current affordability pressures on families and supporting efforts to lower costs, a new Open Banker op-ed by America’s Credit Unions President/CEO Scott Simpson published Thursday addresses how rigid price controls ignore the real costs and risks of lending and credit access.  

The op-ed points to significant concerns these caps would bring for millions of working Americans, as legislation to impose a 10% credit card rate cap and newly reintroduced bills to mandate changes to the credit card processing system gain attention this week.  

Simpson notes that such caps would make it unprofitable to serve subprime and lower-income borrowers, pushing them out of mainstream credit and toward riskier alternatives, while also dampening consumer spending

“Price controls do not eliminate the cost of credit. They simply shift it,” he writes. “Lending must account for risk and requires the payment of administrative costs and expenses related to adhering to government regulations.”

Simpson emphasizes credit unions’ role in delivering affordability through their not-for-profit, member-owned model already offers lower rates, fewer fees, and responsible underwriting without one-size-fits-all mandates.  

“Affordability is not a mere talking point for credit unions. The concept is central to their operations,” he adds. “Credit unions were founded as consumer protectors. They were created to expand access to fair, affordable credit for people often left behind by other financial institutions.”

He cautions that blanket caps could undermine this proven system and produce unintended consequences. Instead, he calls for targeted, data-driven solutions that promote competition, transparency, and financial education while preserving access to fair, affordable credit.

Efforts to highlight these unintended consequences are underway as the Credit Card Competition Act was reintroduced in both the House and Senate following President Donald Trump’s endorsement. America’s Credit Unions is committed to defending consumers against this approach and instead urge lawmakers to focus on policies that support a strong payments system while protecting consumers and financial choice.

Read the full op-ed