Mike Lawler Opposes Bipartisan Proposal to Cap Credit Card Interest Rates

GOP Representative Mike Lawler Opposes Interest Rate Cap

New York Representative Mike Lawler has expressed opposition to a bipartisan initiative aimed at capping credit card interest rates at 10%, a proposal recently brought forward by President Donald Trump. This initiative has garnered support from both sides of the aisle, including notable figures like Senators Elizabeth Warren and Bernie Sanders.

Senator Elizabeth Warren revealed on January 12 that President Trump had reached out to her, stating, “I told him that Congress can pass legislation to cap credit card rates if he will actually fight for it.”

Despite this, Lawler communicated to Punchbowl News that he, along with his Republican colleagues in the House, would not back such a measure. “The idea of just putting in some type of cap, from a traditional finance standpoint, I don’t think very many of us would support,” Lawler remarked.

A Bankrate survey indicates that nearly half of American credit card users carry some unpaid balance, with one in five of these individuals believing they will never pay off their debt. Rising living costs, including food and utilities, have contributed to the increased prevalence of credit card debt, alongside unexpected expenses like medical emergencies and vehicle repairs.

Interest rates, often cited as a significant factor in worsening debt, average over 19%, with some companies charging up to 30%. “For millions of American households, credit card debt represents their highest-cost debt by a wide margin,” noted Todd Rossman, a Bankrate analyst.

Financial institutions, including banks and credit card companies, generally oppose interest rate caps due to the substantial revenue generated from interest payments. For instance, Capital One reported earning $11 billion in 2023 from these payments.

Campaign finance records reveal that between 2023 and 2024, Lawler received approximately $110,000 in contributions from major banks and their employees, in addition to nearly $20,000 from Visa, which is the largest credit card payment network in the U.S. Lawler is currently campaigning for reelection.