Bill > S381

This bill aims to amend the Truth in Lending Act by imposing a cap on credit card interest rates at 10 percent, inclusive of all finance charges. The legislation prohibits credit card issuers from charging annual percentage rates that exceed this threshold and prevents them from circumventing the limit through additional fees. If a lender knowingly charges an interest rate or fees above the permitted level, they would forfeit the entire interest on the credit card debt. Consumers would have the right to recover any excess interest or fees paid within two years through legal action. The bill also includes provisions that allow states to implement even stronger consumer protections. Importantly, the interest rate cap is not permanent; it includes a sunset provision that will automatically repeal these restrictions on January 1, 2031, effectively making this a ten-year experiment in regulating credit card interest rates. The bill represents a significant intervention in the consumer lending market, aimed at protecting consumers from what legislators view as potentially predatory interest rate practices.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/381/all-info