10 Percent Credit Card Interest Rate Cap Act

Key Points

• This bill would cap the annual percentage rate on all credit cards at 10 percent, including all finance charges. This is a dramatic reduction from the current national average credit card APR, which is above 20 percent.
• Credit card companies would be blocked from using extra fees to dodge the 10 percent cap. The total of any fees not counted as finance charges cannot exceed the total finance charges assessed.
• If a lender knowingly charges more than the allowed rate, they would lose the right to collect any interest on that debt. This creates a strong deterrent against violations.
• Consumers who were overcharged could sue to recover all interest, finance charges, or fees they paid, with a two-year window from the last usurious collection to file suit.
• The interest rate cap would automatically expire on January 1, 2031, unless Congress renews it. This sunset provision makes the cap temporary, lasting roughly five years if enacted.
• State laws that provide stronger consumer protections than the 10 percent federal cap would still apply. This means states with even lower rate caps would keep their tighter limits in place.