10 Percent Credit Card Interest Rate Cap Act

This bill proposes to amend the Truth in Lending Act by establishing a federal cap on credit card interest rates. Specifically, it mandates that the annual percentage rate (APR) applicable to credit card extensions of credit may not exceed 10 percentage points , inclusive of all finance charges. To prevent circumvention, the bill stipulates that any fees not considered finance charges cannot be used to evade this limitation, and their total sum cannot exceed the total finance charges assessed. Knowingly charging rates or fees above this cap constitutes a violation, leading to the forfeiture of interest and allowing consumers to recover overpaid amounts within two years. Creditors found in violation would be subject to existing penalties under the Truth in Lending Act, and the bill clarifies that it does not preempt state laws offering greater consumer protection. However, these provisions are not permanent, as the act includes a sunset clause , repealing the cap and related amendments on January 1, 2031.