Bill > A07020

This bill introduces a comprehensive cap on credit card interest rates for personal use in New York State, limiting the maximum interest rate to 10% per annum for credit cards issued by New York state banking institutions to state residents. The legislation amends the existing banking law to specify that any interest rate exceeding 10% would be considered void and against public policy. Additionally, the bill empowers the Attorney General to seek legal injunctions against institutions that violate this interest rate cap. The new law also prohibits individuals from using credit cards for personal, family, or household purchases if the interest rate exceeds the 10% maximum. Notably, the bill includes a sunset provision, meaning the law will automatically expire and be repealed five years after its effective date, allowing for potential future review and adjustment of the interest rate cap. This legislation aims to protect consumers from potentially predatory high-interest credit card practices by establishing a strict maximum interest rate for personal credit cards in New York State.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A7020