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Rep. Luna teams up with unlikely ally to reign in credit card debt

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Published  March 11, 2025 5:43pm EDT
Florida
FOX 13 News

Federal push to cap credit card interest rates

FOX 13's Evan Axelbank reports that Anna Paulina Luna is teaming up with Rep. Alexandria Ocasio-Cortez to cap interest rates at ten percent.

The Brief

    • Rep. Anna Paulina Luna has teamed up with an unlikely ally, Rep. Alexandria Ocasio-Cortez, to reign in credit card debt.
    • Their co-sponsored legislation aims to cap interest rates at ten percent.
    • Americans currently have $1.2 trillion in credit card debt, with researchers saying the average interest rate of 24 percent is a big reason why.

TAMPA - Rep. Anna Paulina Luna is teaming up with an unlikely ally to take on credit card debt.

Americans now own a record $1.2 trillion in credit card debt, with researchers saying the average interest rate of 24 percent is a big reason why.

60 percent of those with debt have had it for a year or longer.

Luna has co-sponsored legislation with Rep. Alexandria Ocasio-Cortez (D-Bronx), to cap interest rates at ten percent.

Rep. Anna Paulina Luna has teamed up with an unlikely ally, Rep. Alexandria Ocasio-Cortez, to reign in credit card debt.

Fox 13: "Was it at all difficult for you to enter into this alliance with her?"

Rep. Luna: "No, not at all."

Luna says ten percent is a compromise with the banking industry.

"You're seeing people from both the left and the right flank come together and say, look, if there is predatory lending and needs to stop, you should not have to spend your entire lifetime paying back debt," said Luna.

READ: Trump doubles planned Canada tariffs to 50%, markets slump amid recession fears

In co-sponsoring the bill in the house, they're joining two polar opposites, Republican Josh Hawley and Democrat Bernie Sanders, who have filed a similar bill in the senate.

Rep. Anna Paulina Luna has teamed up with an unlikely ally, Rep. Alexandria Ocasio-Cortez, to reign in credit card debt.

"Many people get into credit card debt for practical reasons like gas and groceries and medical bills and car repairs," said Bankrate analyst Ted Rossman, "and it's just hard to get out of that."

Big picture view:

Rossman warns the bill may not work as intended, because banks could respond with cutbacks in rewards programs and get tighter in who they offer cards to.

"There is a growing populist streak across both parties. And I would say that banks need to take notice of this," said Rossman. "It sounds great to bring it down, but like I said, the problem is it would become a lot harder to get a credit card."

In an age where immediate relief for inflation is hard to come by, AOC and APL say they have a worthy prescription.

"Look at the amount of impact that it's had on families," said Luna.

President Trump has said on the campaign trail he would be in favor of signing a bill that caps interest rates at ten percent.

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The Source: Information for this story was gathered by FOX 13's Evan Axelbank.

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