Credit card rate cap to have limited impact on debt collectors, KBW says

Jefferson Capital

12/01/2026 12:48

** Brokerage KBW sees limited impact on debt collectors should U.S. President Donald Trump's proposal to cap credit card interest rates at 10% become effective

** Such a move could push subprime borrowers to access credit in other markets such as unsecured loans and buy now, pay later (BNPL)

** "Since these other markets also create receivables for the debt collection industry, we would expect there to be some offset to potentially slower growth in credit card receivables" - KBW

** Debt collectors such as Jefferson Capital JCAP.O purchase and manage charged-off and bankruptcy receivables

** Analysts say Trump's proposal would require legislation and has slim odds of passing

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))