John Berlau, director of finance policy at the Competitive Enterprise Institute (CEI), expressed concerns over a federal cap on credit card interest rates. He argued that such a measure reflects elitist thinking that disregards consumers' ability to choose financial products. Berlau's statement was made in an op-ed on February 4.
"While Sens. Sanders and Hawley may describe their new bill to cap credit card interest rates at 10 percent as populist, their price control legislation is actually the height of elitism," said Berlau. "The senators – and members of the political class who support their approach – imply strongly that they know better than the average American consumer what the price should be for credit."
In early 2025, bipartisan lawmakers reintroduced the Credit Card Competition Act alongside a new bill proposing to cap credit card interest rates at 10%. According to Newsweek, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez are leading the effort for the interest rate cap, asserting it would help curb predatory lending practices. Meanwhile, Senator Dick Durbin’s Credit Card Competition Act aims to address Visa and Mastercard’s network dominance. These legislative proposals have ignited discussions about access to credit and market competition.
According to a January 2025 policy brief by the American Bankers Association, imposing a 10% credit card interest rate cap could render 65 million Americans ineligible for credit cards, particularly affecting those with subprime credit. The brief suggests that such caps would lead to tighter credit markets and increase financial exclusion. Similar concerns were raised by the Heritage Foundation, which compared these caps to historical price controls that limited access to regulated financial products.
Berlau is a Senior Fellow and Director of Finance Policy at CEI. His official congressional biography states that he focuses on financial regulation, entrepreneurship, and access to capital. He is also noted as the author of "George Washington, Entrepreneur" and has testified before Congress on market-based financial reforms.
The Competitive Enterprise Institute is a Washington, D.C.-based libertarian think tank founded in 1984. It advocates for limited government, individual liberty, and free enterprise. CEI's research encompasses financial regulation, labor policy, environmental rules, and tech innovation with an emphasis on reducing federal intervention.