Credit card interest rates are drawing renewed scrutiny.

They've become an "extraction machine," Klarna Group PLC (NYSE:KLAR) CEO Sebastian Siemiatkowski told Fox Business last month.

He praised President Donald Trump for pushing a 10% cap on interest rates and taking on banks over what he called excessive costs for consumers. "President Trump is super wise and willing to take on the banks on behalf of U.S. consumers," Siemiatkowski said. 

The proposal faces resistance from much of the banking industry, and credit card companies have not yet complied with Trump's call for a 10% cap. Legislation to enforce it has not moved forward in Congress.

Don't Miss:

• Fast Company Calls It a ‘Groundbreaking Step for the Creator Economy' — Investors Can Still Get In at $0.85/Share
• Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro

Consumers Are Fed Up with Credit Card Practices

"They are tired of these tricks that the credit cards have been pulling on them, and they are looking for healthier alternatives," Siemiatkowski told Fox Business. He said U.S. consumers are increasingly frustrated with traditional credit card practices.

He said many consumers feel burdened by a system he described as favoring banks over consumers.

Trending: This ETF issuer isn't chasing the index — it's building tools for income, leverage, and conviction

Bank Opposition and Market Reactions

Siemiatkowski addressed the opposition from banks and credit card issuers on Fox Business. They argue that capping interest rates would limit access to credit, particularly for lower-income borrowers. 

He disagreed, pointing to international examples where similar policies have been successfully implemented without negative outcomes.

"In some European markets, there are interest rate caps," Siemiatkowski told Fox Business. "It has not led to these consequences that the banks are now trying to scaremonger with."

See Also: Earn While You Scroll: The Deloitte-Ranked #1 Software Company Growing 32,481% Is Opening Its $0.50/Share Round to Accredited Investors.

High Fees Affect Everyone, Not Just Credit Card Holders

Siemiatkowski said that high merchant and credit card fees drive up prices across the board. 

"Because merchant fees and credit card fees are so high, grocers and retailers have to charge higher fees on average, even for people paying cash," he told Fox Business, calling it an unfair system that shifts costs onto consumers who don't use credit cards.

Siemiatkowski said reform is necessary to restore balance to the system. "Reining things in with requirements like this can be healthy for an industry that's lost its direction," he said. 

Read Next: Motley Fool's analysts have built a new lineup of passive ETFs — explore which "Foolish" strategy fits your investment goals.

Image: Shutterstock