Bill > S2730

This bill, the Protecting Consumers from Unreasonable Credit Rates Act of 2023, would amend the Truth in Lending Act to establish a national maximum interest rate of 36% for all consumer credit transactions. The bill defines the "fee and interest rate" to include all charges and costs associated with the extension of credit, such as fees, premiums, and ancillary products. The bill also requires the disclosure of this "fee and interest rate" for credit plans, and provides civil liability and enforcement mechanisms, including criminal penalties, for violations of the 36% rate cap. The bill aims to address predatory lending practices by eliminating high-cost credit products and encouraging more affordable small-dollar loan alternatives.