By: Tonza Thomas, Executive Director of NAACP Georgia State Conference
At the NAACP, our mission has always been clear: to ensure the political, educational, social,
and economic equality of rights for all people and to eliminate race-based discrimination.
Economic empowerment is central to that mission. That’s why we feel compelled to speak out
against federal legislation that would cap credit card interest rates, a well-meaning but
misguided policy.
On its surface, limiting credit card interest rates may seem like a consumer-friendly move—an
attempt to shield Americans from the burden of high interest payments. But the reality is more
complicated. Such a cap could actually harm the very communities it's intended to help,
particularly African American families who already face disproportionate barriers to accessing
credit.
Let’s be honest about how credit works in America. Credit is not just about buying power—it’s
about opportunity. It allows families to cover emergency expenses, build businesses, invest in
education, and bridge income gaps. But access to credit is not equitably distributed. Historically,
Black Americans have been systematically excluded from wealth-building tools, including fair
and accessible lending.
African American families are more likely to have lower credit scores—not because of
irresponsibility, but because of systemic inequalities such as lower household wealth, wage
gaps, and limited access to financial services. When regulators impose a hard cap on interest
rates, lenders often respond not by offering better deals, but by tightening their lending
standards. That means fewer people—especially those with imperfect credit histories—will be
approved for credit cards at all, which would push these families further from the possibility of
attaining financial stability.
This scenario is not hypothetical. When similar interest rate caps were enacted on payday loans
or other short-term credit products, many consumers found themselves cut off entirely, pushed
out of the formal financial system. Some turned to unregulated or even illegal sources of credit.
Others simply went without, unable to cover rent, utilities, or emergency expenses.
If the same logic is applied to credit cards, millions of Americans could lose a key financial
lifeline. And given the structural inequities in our economy, African American households are
likely to be among the hardest hit. Limiting access to credit will not reduce inequality; it will
deepen it.
We also must remember that credit card APRs are already highly regulated. Lenders are
required to disclose interest rates and fees in clear terms, and consumers have access to a
wide range of credit products, including many with competitive rates. Moreover, responsible
credit use—when accessible—is one of the few ways individuals can build or rebuild credit and
move toward financial independence.
At the NAACP, we believe in empowering our communities with tools to get ahead —not
restricting access to them. Instead of pushing policies that risk cutting people off from credit
entirely, we should focus on expanding financial literacy, supporting fair lending practices, and
addressing the root causes of economic inequality.
Let’s not forget that the goal is not just to protect consumers from high interest rates, but to
create an economy where every American—regardless of race or zip code—has the chance to
thrive. That means making sure Black families have access to the full range of financial tools,
including credit cards, that others take for granted. An alternative solution to protecting
borrowers would be to expand community development financial institutions that are designed
to provide financial services to people from underserved communities or low-income
backgrounds.
As we fight for justice and equity across all domains of life, we must ensure that well-intentioned
reforms don’t inadvertently close doors for the very communities we aim to uplift. The NAACP
Georgia State Conference urges lawmakers and regulators to consider the real-world
consequences of interest rate caps—and to focus instead on financial inclusion, fairness, and opportunity.
Last updated on September 5, 2025
