Warren Calls Jamie Dimon's Bluff on Credit Card Affordability, Asks Him to Publicly Support Bill Allowing States to Impose Interest Rate Caps
Following a 1978 Supreme Court case, states like Vermont and Massachusetts cannot enact credit card caps like Dimon suggested unless Congress passes new legislation
“With American families struggling to afford everyday life, including $160 billion a year in credit card interest charges, it is more important than ever to empower states to provide relief to their citizens”
Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., following his suggestion at Davos that certain states should impose a 10% credit card interest rate cap. Thanks to a 1978 Supreme Court case, states are unable to implement Dimon’s suggestion unless Congress passes new legislation. In her letter, Ranking Member Warren asked Dimon to publicly support a bill she co-sponsored to make it legal for states to enforce usury limits against national banks, like JPMorgan Chase, and other out-of-state banks.
“Just last month, you suggested that certain states should impose a 10% credit card interest rate cap on banks. If you indeed support this policy, I encourage you to publicly call on Congress to pass this legislation to make your self-described “great idea” a reality,” wrote the Ranking Member.
“American families are struggling under the weight of record-high debt levels, including more than $1.2 trillion in credit card balances that carry an average interest rate of more than 20% and interest rates around 30% for consumers with low credit scores. The largest four credit card banks, American Express, Capital One, JPMorgan Chase, and Citigroup alone earned $146 billion in credit card revenue last year,” continued the Ranking Member.
“The Empowering States’ Rights to Protect Consumers Act would amend the Truth in Lending Act of 1968 to clarify that consumer lenders—regardless of their location or legal structure—must abide by the interest rate limits of the states in which their customers reside,” wrote the Ranking Member. “If enacted, Massachusetts, Vermont, and other states would be able to impose interest rate limits, such as a 10% credit card interest rate cap, on banks like JPMorgan Chase.”
The Ranking Member concluded: “Given your recent comments, please confirm your support for this legislation in writing by March 3, 2026.”
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