Synchrony Financial Joins The Opposition Against Trump’s Proposed 10% Cap on Credit-Card Interest Rates
Synchrony Financial, a leading issuer of store-branded credit cards, has become the latest lender to voice its opposition against President Trump’s proposal to cap credit-card interest rates at 10%. The company has added a unique perspective to the debate, asserting that not only would the banking sector be negatively impacted, but the U.S. retail industry would also face significant challenges.
Synchrony’s Stance on The Issue
During the company’s quarterly earnings call, Synchrony CEO Brian Doubles expressed his concerns about the proposed rate cap stating, “We support 400,000 small-to-medium sized businesses who depend on those credit programs. In some cases, we can be over 40% of their sales. So this would be a huge hit for them.” Synchrony has partnerships with a number of retail giants including Amazon, Walmart, Lowe’s, JCPenney, and Walgreens.
It is important to note that while banks have been vocal about their opposition to the proposed cap, retail trade associations have largely remained silent. The National Retail Federation, for example, has not issued a statement on the proposal.
Impact on The Credit-Card Business
Synchrony’s business is heavily concentrated in the credit card sector, particularly store-branded cards. Therefore, a rate cap of 10% would significantly affect the company’s revenue. Morgan Stanley analysts have noted that only Bread Financial Holdings would be more adversely affected by Trump’s proposal than Synchrony. Notably, shares in Synchrony have dropped by approximately 15% since Jan. 9, the day before Trump endorsed the rate cap.
The Argument Against The Rate Cap
CEO Brian Doubles has stated that while Synchrony agrees with the Trump administration’s focus on affordability, a rate cap could have unintended negative consequences. “Our products have to be competitively priced, and we also have to offer significant value to the consumer,” Doubles said. “So any price controls like an APR cap would not make credit more affordable. It would eliminate credit for those that need it.”
Last year, annual percentage rates on retail credit cards averaged 30%, which is approximately 1.5 times higher than regular card rates, according to research by Bankrate. This is because retailers use credit cards to incentivize sales and are often willing to accommodate cardholders with lower credit scores.
The Broader Opposition
Top executives at JPMorganChase, Bank of America and Citi have also spoken out against the 10% rate cap proposal, arguing that it would ultimately harm consumers.
Synchrony’s Financial Performance
In the fourth quarter of 2025, Synchrony reported net earnings of $751 million, a slight decrease from $774 million in the same period a year earlier. The company is projecting mid-single-digit growth in loan receivables for 2026, a significant improvement over the previous year, which saw a decrease of 0.9% from 2024.
It remains to be seen how this debate will unfold and what the implications will be for the banking and retail sectors, as well as for consumers. One thing is clear, however, this proposed cap has sparked a significant amount of controversy and opposition.
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