Americans have accumulated over $1 trillion in credit card debt. For context, a stack of one trillion dollar bills would wrap around the Earth more than three times.
Almost more troubling than the total amount of U.S. credit card debt are the sky-high interest rates consumers owe on their balances—APRs that have been climbing higher as market interest rates rise. In late 2021, the average interest rate for a credit card was about 14.51%. By 2024, it was over 21%—and many Americans find themselves with cards charging as high as 30%.
The Consumer Financial Protection Bureau (CFPB) has begun an investigation into credit card interest rates. The agency is encouraging consumers to submit their thoughts on their rates, terms, and conditions.
“As Americans pay off their credit card bills from holiday spending, many are concerned about credit card interest rates that often surpass 30%,” said CFPB Director Rohit Chopra on X, announcing the initiative. “A few credit card companies dominate the market, and average interest rates have creeped up significantly over the past decade.”
CFPB is seeking public feedback in seven areas:
- The terms of credit card agreements and the practices of credit card issuers
- Whether credit card plan disclosures of terms, fees, and other expenses are helpful
- The adequacy of protections against unfair or deceptive practices relating to credit card plans
- The cost and availability of consumer credit cards
- The safety and soundness of credit card issuers
- The use of risk-based pricing for consumer credit cards
- Consumer credit card product innovation
Consumers can respond to individual questions or comment generally about how the credit card market is functioning. Following analysis of consumer feedback, the CFPB will publish additional research to inform the policy debate.
The bureau is mandated to conduct this research every two years under orders of the CARD Act. The 2023 report noted that add-on products, fee harvester cards, and deferred interest products were still major concerns in the credit card market. Transparency issues, including online disclosures, rewards products, and grace periods, are also major worries.
The CFPB has not been shy about its feelings about credit card companies. Last year, a new regulation capped most credit card late fees at $8. The CFPB also announced it was cracking down on deceptive credit card reward tactics.
“Large credit card issuers too often play a shell game to lure people into high-cost cards, boosting their own profits while denying consumers the rewards they’ve earned,” Chopra wrote in late 2024.
While Chopra and CFPB’s focus on credit cards, interest rates, and points worries some consumers who enjoy cashback bonuses, the future of the CFPB work is unclear. There remain questions about whether the Trump administration will replace Chopra or dismantle the agency.
During his campaign, Trump said he wanted to cap credit card interest rates at 10%.
Fortune reached out to the American Banking Association, CFPB, Capital One, and Chase for comment but did not hear back. Citi declined to comment.
