EPC Study: How Rate Caps Harm American Consumers

A new Electronic Payments Coalition study found nearly 90% of current cardholders – between 175-190 million Americans – would effectively lose access to credit. Essentially, any American with a credit score of less than 740 – well above the national average – would see their card eliminated or credit limit drastically reduced.

Key Findings in the new EPC report:

• 82–88% of open credit card accounts would effectively lose access to credit under a 10% APR cap.
• Nearly every credit card account associated with a credit score below 740 would be closed or severely restricted.
• 175–190 million American cardholders would effectively lose access to credit cards nationwide.
• All remaining cardholders — regardless of credit score — would face lower credit limits, tighter underwriting standards, and reduced or eliminated rewards.
• LMI households and young consumers would be most likely to lose access, limiting their ability to build credit or manage financial shocks.
• Consumers shut out of credit cards would likely turn to higher-risk alternatives exempt from the cap, including payday lenders, unregulated online lenders, title lenders, and pawn shops.

See the full report below: