Bank Of America, Citigroup May Launch Credit Cards With 10% Rate

Once again Trump’s brash negotiating style appears to be paying off. 

Two weeks after Trump shocked the world by demanding lenders cap credit card interest rates at 10% for one year, Bank of America and Citigroup are exploring options to do just that in an attempt to placate the president. 

Bloomberg reports that both banks are mulling offering cards with a 10% rate cap as one potential solution. 

Earlier this week, Trump said he would ask Congress to implement the proposal, giving the financial firms more clarity about what exact path he’s pursuing. Bank executives have repeatedly decried the uniform cap, saying it’ll cause lenders to have to pull credit lines for consumers. 

The alternative proposal is to offer credit cards that would have a 10% rate specifically targeted to those consumers… who would already be eligible for the lowest rates around. And while it would do nothing to alleviate the near record high APRs for most Americans, it would let Trump declare that he managed to get the banks to yield – even if it was only a nominal success.

As Bloomberg notes, some executives have publicly said they agree with Trump’s focus on affordability, and the latest options they’re mulling are one way to potentially work with the administration in its effort to lower costs for consumers.

Many issuers including Bank of America and Citigroup already offer introductory rates for consumers as low as 0% for a period of time.

On Thursday, Bank of America Chief Executive Officer Brian Moynihan said a 10% cap would slow consumer spending, but noted that the bank has been talking to the administration about it.

“We’re working hard,” Moynihan said Thursday on a Bloomberg TV interview. “We’re trying to come up with solutions.”