Bill > HR1944

This bill proposes to amend the Truth in Lending Act (TILA) to establish a maximum annual percentage rate (APR) of 10% for credit cards, including all finance charges. The legislation would prohibit credit card issuers from charging interest rates above this cap and prevent them from circumventing the limit through additional fees. If a lender charges an interest rate or fees exceeding the 10% threshold, they would be in violation of the law and subject to significant penalties, including forfeiture of the entire interest on the credit card debt. Consumers would have the right to recover any excessive interest or fees paid within two years of the last usurious collection through a legal action. The bill also includes a provision that does not prevent states from implementing stronger consumer protection laws. Importantly, these provisions would have a sunset clause, meaning they would automatically be repealed on January 1, 2031, unless Congress takes action to extend them. The primary goal of this legislation is to protect consumers from excessively high credit card interest rates by establishing a federal maximum rate.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/1944/all-info