Senate hearing spotlights split over credit-card caps, overdraft fees and CFPB enforcement
June 23, 2026 | U.S. Senate Banking Committee GOP
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A central strand of the hearing was a contested exchange over consumer protections, the Consumer Financial Protection Bureau's enforcement role and whether rate caps on credit cards would help or harm families.
Ranking Member Warren asked witnesses whether they agreed with President Trump's suggestion that affordability is a "hoax." After witnesses declined to endorse that wording, Warren pressed the industry witnesses on the president's January pledge to ask banks to cap credit-card rates at 10% for one year. "Which banks have lowered their credit card interest rate to 10%? Can you name one?" Warren asked Lindsey Johnson. Johnson said low-cost options exist but did not name a bank that had adopted a 10% cap.
Warren asserted a calculation that "it's $57 billion in dollars in credit card interest rate above 10% that Americans have paid since January 20th," a figure she presented as an estimate of the additional cost to families if a 10% cap had been implemented. Johnson and other industry witnesses warned that mandatory, across-the-board caps historically reduced access to credit for lower-credit borrowers, citing a state-level example where subprime lending declined sharply after a cap was imposed.
Dr. Morgan and other witnesses also criticized reductions in CFPB enforcement and program cutbacks, saying those changes removed consumer safeguards and contributed to higher out-of-pocket costs for many families. Dr. Morgan told the committee that the CFPB had previously returned more than $21 billion to families through enforcement and said stepping back from enforcement risks predatory practices.
"We need a CFPB that's credible and durable," Lindsey Johnson told the committee, pressing for cost-benefit analysis in rulemaking to avoid unintended harms to credit access. Senators from both parties asked for data and examples; the committee invited witnesses to submit follow-up materials for the record.
The hearing recorded no formal policy votes; senators asked for additional facts and for witnesses to provide calculations and evidence to the committee record.
Ranking Member Warren asked witnesses whether they agreed with President Trump's suggestion that affordability is a "hoax." After witnesses declined to endorse that wording, Warren pressed the industry witnesses on the president's January pledge to ask banks to cap credit-card rates at 10% for one year. "Which banks have lowered their credit card interest rate to 10%? Can you name one?" Warren asked Lindsey Johnson. Johnson said low-cost options exist but did not name a bank that had adopted a 10% cap.
Warren asserted a calculation that "it's $57 billion in dollars in credit card interest rate above 10% that Americans have paid since January 20th," a figure she presented as an estimate of the additional cost to families if a 10% cap had been implemented. Johnson and other industry witnesses warned that mandatory, across-the-board caps historically reduced access to credit for lower-credit borrowers, citing a state-level example where subprime lending declined sharply after a cap was imposed.
Dr. Morgan and other witnesses also criticized reductions in CFPB enforcement and program cutbacks, saying those changes removed consumer safeguards and contributed to higher out-of-pocket costs for many families. Dr. Morgan told the committee that the CFPB had previously returned more than $21 billion to families through enforcement and said stepping back from enforcement risks predatory practices.
"We need a CFPB that's credible and durable," Lindsey Johnson told the committee, pressing for cost-benefit analysis in rulemaking to avoid unintended harms to credit access. Senators from both parties asked for data and examples; the committee invited witnesses to submit follow-up materials for the record.
The hearing recorded no formal policy votes; senators asked for additional facts and for witnesses to provide calculations and evidence to the committee record.
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