What does Preamble of 10 Percent Credit Card Interest Rate Cap Act do?

This bill proposes to amend the Truth in Lending Act. The proposed amendment would cap credit card interest rates at 10 percent.

What does SHORT TITLE. of 10 Percent Credit Card Interest Rate Cap Act do?

This bill is formally titled the "10 Percent Credit Card Interest Rate Cap Act".

What does CAP ON CREDIT CARD INTEREST RATES. of 10 Percent Credit Card Interest Rate Cap Act do?

This section amends the Truth in Lending Act to cap credit card interest rates at 10 percentage points above the rate charged on other extensions of credit. Fees not considered finance charges are restricted; their total cannot exceed the total amount of finance charges. Violations of the interest rate cap are deemed a violation of the title and result in forfeiture of interest. Individuals who overpay due to a violation can recover the amount of interest, finance charges, or fees paid within two years. Creditors violating this subsection are subject to the provisions of section 130 of the Truth in Lending Act. This section does not preempt state laws providing greater consumer protection. A technical amendment is made to section 130(a) of the Truth in Lending Act. The provisions related to the interest rate cap (sections 107(f) and 130(a)) will sunset on January 1, 2031.

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10 Percent Credit Card Interest Rate Cap Act

Last updated: 2/4/2025 · Introduced: 2/4/2025

Author: Bernard Sanders (I-VT)

TL;DR (AI)

This bill amends the Truth in Lending Act to cap credit card interest rates at 10 percentage points above the rate charged on other extensions of credit.
It limits fees on credit cards to the total amount of finance charges and allows consumers to recover overpayments resulting from interest rate violations.
The interest rate cap and related provisions will expire on January 1, 2031, and the bill does not preempt state laws offering stronger consumer protections.

119th Congressin committeeHR. 1944(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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