While lawmakers debate a proposed 10% credit card interest rate cap, credit unions are asking what this could mean for access to credit, profitability and member relationships.

In this episode, credit card expert David Shipper of Datos Insights takes a deep dive into the potential impact of legislative rate caps, what could happen to credit card programs, and what credit union leaders should be doing now.

Key Takeaways

02:11: David explains that the bill is extremely blunt: a flat 10% APR cap on all credit card interest, with no distinctions for cash advances, default rates, or risk tiers.

04:50: David outlines how a cap would reduce approvals, shrink credit lines, and push consumers toward worse alternatives like payday loans or BNPL.

09:38: David agrees that credit union leaders are right to be concerned: many programs could become unprofitable, leading to fewer approvals and higher fees.

11:46: Despite the risks, David argues credit unions could gain market share because their rates already average around 12–13%.

16:21: David warns that state-by-state caps would create a patchwork of rules, disadvantaging local credit unions while national banks export higher rates.

20:31: David outlines practical steps that credit unions can do now: speed up digital applications, enable instant approvals, offer digital card issuance, and reevaluate fees to ensure sustainability.

Resources Mentioned:

https://datos-insights.com/

https://www.americascreditunions.org/