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10 Percent Credit Card Interest Rate Cap Act
To amend the Truth in Lending Act to cap credit card interest rates at 10 percent.
Summary
This bill amends the Truth in Lending Act to cap credit card annual percentage rates at 10 percent, inclusive of all finance charges. It prohibits creditors from using non-finance-charge fees to circumvent the cap, and the total of such fees cannot exceed the total finance charges assessed. Violations would be considered breaches of the Truth in Lending Act, with penalties including forfeiture of all interest and fees charged, and consumers could recover overpaid amounts within 2 years. The bill preserves states' ability to impose stricter rate caps. The federal cap expires on January 1, 2031.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Sen. Sanders, Bernard [I-VT] (I-VT)
3 cosponsors
- Sen. Gillibrand, Kirsten E. [D-NY] (D-NY)
- Sen. Hawley, Josh [R-MO] (R-MO)
- Sen. Merkley, Jeff [D-OR] (D-OR)
Money behind the sponsor
Top reported contributors to Bernard Sanders’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Bernard Sanders → · Outside spending →
Actions (2)
- Feb 4, 2025 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. · senate
- Feb 4, 2025 Introduced in Senate
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE SENATE OF THE UNITED STATES
February 4, 2025
Mr. Sanders (for himself and Mr. Hawley) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To amend the Truth in Lending Act to cap credit card interest rates at 10 percent.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “10 Percent Credit Card Interest Rate Cap Act”.
SEC. 2. CAP ON CREDIT CARD INTEREST RATES.
(a) In General.—Section 107 of the Truth in Lending Act (15 U.S.C. 1606) is amended by adding at the end the following:
“(f)(1) The annual percentage rate applicable to an extension of credit obtained by use of a credit card may not exceed 10 percentage points, inclusive of all finance charges.
“(2) Any fees that are not considered finance charges under section 106(a) may not be used to evade the limitations of paragraph
(1), and the total sum of such fees may not exceed the total amount of finance charges assessed.
“(3) The taking, receiving, reserving, or charging of a credit card annual percentage rate or fee greater than that permitted under this subsection, when knowingly done, shall be deemed a violation of this title, and a forfeiture of the entire interest which the note, bill, or other evidence of the obligation carries with it, or which has been agreed to be paid thereon.
“(4) If a credit card annual percentage rate or fee greater than that permitted under this subsection has been paid, the person by whom it has been paid, or the legal representative thereof, may, by bringing an action not later than 2 years after the date on which the usurious collection was last made, recover back from the lender in an action in the nature of an action of debt, the entire amount of interest, finance charges, or fees paid.
“(5) Any creditor who violates this subsection shall be subject to the provisions of section 130.
“(g) Nothing in this section may be construed to preempt any provision of State law that provides greater protection to consumers than is provided under this section.”.
(b) Technical and Conforming Amendment.—Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended, in the matter preceding paragraph (1), by inserting “section 107(f),” before “this chapter”.
(c) Sunset.—
(1) In general.—The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended—
(A) in section 107 (15 U.S.C. 1606), by striking subsections (f) and (g); and
(B) in section 130(a) (15 U.S.C. 1640(a)), in the matter preceding paragraph (1), by striking “section 107(f),”.
(2) Effective date.—The amendments made by paragraph (1) shall take effect on January 1, 2031. <all>
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