Citi Executive Warns Rate Cap Would Kill Credit for Lower-Income Consumers

The Trump Administration’s proposed 10% cap on credit card interest rates would harm access to credit as well as consumer spending in several sectors of the economy, Citi’s head of U.S. personal banking and incoming chief financial officer said Wednesday (Feb. 11).

Speaking at the Bank of America Securities 2026 Financial Services Conference, Gonzalo Luchetti said Citibank already offers customers low-cost options such as an Access deposit account that is low cost and provides an easy path to zero cost, no overdraft fees, affordable home loans and a Simplicity card that is a no-fee credit card.

While Citibank supports affordability, the bank doesn’t support the proposed APR cuts because it believes “the detrimental impact on the economy would be really material,” Luchetti said.

“If you think about $6 trillion of the $33 trillion that is this economy is credit card spend, and we’re talking about something that in theory could have material impacts in credit lines, in availability of credit, especially for the lower income and the lower FICO, because it would become completely unprofitable in an unsolvable way, that to me would have massive ripple effects through retail industry, through hospitality, travel,” Luchetti said. “So, that’s why we don’t see it as a good thing we would support.”

President Donald Trump called for a one-year, 10% cap on credit card interest rates in a Jan. 9 post on Truth Social. “Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more,” the president wrote in the post.

The proposal drew criticism from a collection of industry groups, including the Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum and Independent Community Bankers.

In a statement provided to PYMNTS at the time, the groups said “evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit card, the very consumers this proposal intends to help.”

JPMorgan Chase CEO Jamie Dimon said Jan. 21 that a 10% credit card interest rate cap would “remove credit from 80% of Americans.”