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Congress·In Committee·25 days ago

Senate Bill Would Cap Personal Loan Interest Rates at 36% Nationwide

Also known as: Predatory Lending Elimination Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Key Points

  • This bill would create a national limit on how much interest lenders can charge for most personal loans. It sets a maximum annual percentage rate (APR) of 36%, which is the same limit currently used to protect active-duty military members.
  • The new limit would apply to many types of high-cost borrowing, such as payday loans, car title loans, and certain installment loans. It aims to stop lenders from charging triple-digit interest rates that often trap people in cycles of debt.
  • Some loans are not included in this cap. You would still be able to get standard mortgages for homes and traditional loans to buy a car. Loans from federal credit unions also have their own separate rules.
  • For credit cards, the 36% limit applies to the interest rate, but most standard fees like late fees wouldn't count toward that limit. However, extra costs like credit insurance or other add-on products would be included in the calculation.
  • State officials, like your State Attorney General, would have the power to sue lenders who break these rules. This gives local leaders more ways to protect people in their states from illegal lending practices.
  • If passed, the Consumer Financial Protection Bureau would have one year to write the specific rules, and the law would fully kick in about 18 months after being signed.
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Milestones

2 milestones2 actions
Feb 5, 2026Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S511-512)

Feb 5, 2026

Introduced in Senate

Related News

4 articles
Credit and Collection News·18 days ago

Senate Bill Would Cap Consumer Interest Rates At 36%

A new Democratic Senate bill—the Predatory Lending Elimination Act—has been introduced to impose a nationwide 36% APR cap on most forms of consumer credit, extending the Military Lending Act standard to all consumers. It targets payday, car-title, and installment loans.

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American Banker·over 4 years ago

Proposed 36% APR cap is tough sell to GOP, banks

The proposal to extend the military's 36% interest rate cap to all consumer loans faces significant opposition from Republicans and banks. Critics argue it would hamper lenders' ability to price for risk, while supporters say it protects consumers from triple-digit interest debt traps.

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ICBA NewsWatch Today·over 2 years ago

ICBA opposing congressional efforts to advance rate caps

The Independent Community Bankers of America (ICBA) expressed opposition to a national 36% interest rate cap, arguing it would make it more difficult for many consumers to obtain credit and harm the very people the legislation seeks to protect.

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Source Information

Document Type

Congressional Bill

Official Title

Predatory Lending Elimination Act

Bill NumberS 3793
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S511-512)

Sponsor

Cosponsors

(15)
D: 15

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.