Anna Paulina Luna and AOC Join Forces to Challenge Big Banks, Tackle Credit Card Debt

Rep. Anna Paulina Luna (R-FL) and Rep. Alexandria Ocasio-Cortez (D-NY) have introduced bipartisan legislation aimed at capping credit card interest rates at 10%, a move they argue is necessary to protect working-class Americans from excessive debt.

Congresswoman Anna Paulina Luna (R-FL) is working with Congresswoman Alexandria Ocasio-Cortez (D-NY) to cap credit card interest rates at 10%.

This is a good thing. pic.twitter.com/VyzsMUmesv

— Eric Daugherty (@EricLDaugh) March 8, 2025

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The bill, introduced Friday, would prohibit credit card companies from charging interest rates above 10%, a policy that was previously endorsed by President Donald Trump during his campaign.

Luna released a statement explaining the reasoning behind the legislation, arguing that high interest rates have long trapped Americans in financial hardship.

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

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“We need a fair solution – and that means getting rid of the status quo and putting a reasonable cap on interest rates.”

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

We need a fair solution — and that means getting rid of the status quo and putting a reasonable cap on interest rates. pic.twitter.com/lBeBbQwmAx

— Rep. Anna Paulina Luna (@RepLuna) March 8, 2025

Ocasio-Cortez echoed Luna’s sentiments, warning that financial institutions are preying on struggling families.

“Credit cards with high interest rates regularly trap working people in endless cycles of debt. At a time when families are struggling to make ends meet, we cannot allow big banks to shake down our communities for profit,” she said.

The idea of capping credit card interest rates is not new and has been introduced before by members of both parties. Sen. Josh Hawley (R-MO) and Sen. Bernie Sanders (I-VT) previously introduced a bill in 2019 that sought to cap rates at 15%, but it did not advance.

Currently, the average credit card interest rate is nearly 15%, according to Forbes, making the proposed 10% cap a significant reduction.

Rates have been rising for years, but they were made worse by inflation and the financial policies enacted during Joe Biden’s presidency, as well as the economic effects of the COVID-19 pandemic.

While capping credit card interest rates may seem like a consumer-friendly solution, critics argue it could come with unintended consequences.

Some economists warn that limiting how much banks and credit card companies can charge could make lenders more selective about who they approve for credit.

This could result in fewer approvals for individuals with low credit scores or no credit history, making it more difficult for some Americans to access credit.

Banks may also compensate for lost revenue by increasing other fees, reducing rewards programs, or limiting credit card benefits.

Another concern is that if credit becomes less accessible through traditional banks, some consumers may turn to payday loans and other high-interest lending options, which often have far higher costs than credit cards.

With Trump’s endorsement of a 10% cap on credit card interest rates, this proposal may gain traction among conservatives who support reining in corporate practices that exploit consumers.

However, it remains to be seen whether the bill will advance in Congress or face resistance from financial institutions and free-market advocates who argue against government intervention in interest rates.

For now, Luna and Ocasio-Cortez have formed an unusual alliance, pushing for a policy they believe will provide relief for working-class Americans burdened by high-interest debt.

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