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

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