10 Percent Credit Card Interest Rate Cap Act
Summary
What This Bill Does
The 10 Percent Credit Card Interest Rate Cap Act amends the Truth in Lending Act to impose a national credit card rate ceiling. The annual percentage rate on credit card extensions of credit may not exceed 10 percentage points, inclusive of finance charges. Creditors may not use fees outside the finance-charge definition to evade the cap, and the total of those fees cannot exceed the finance charges assessed. Knowing violations for rates or fees above the cap trigger forfeiture of the entire interest on the obligation. Consumers who paid an over-cap rate or fee can sue within two years of the last usurious collection to recover the full amount of interest, finance charges, or fees paid, and creditors are also subject to TILA civil-liability provisions. Stronger state consumer protections are preserved. The bill includes a sunset by later striking the new subsections effective January 1, 2031.
Who Benefits and How
Credit card borrowers benefit from a 10 percent APR cap and limits on fee-based evasion. Consumers who paid over-cap charges benefit from a two-year recovery action for interest, finance charges, and fees. Consumer finance attorneys benefit from a clearer TILA remedy for knowing credit card overcharges. State consumer-protection regimes benefit because stronger state laws are not preempted.
Who Bears the Burden and How
Credit card issuers lose revenue from interest rates and fees above the 10 percent cap. Banks and card lenders must redesign pricing, risk underwriting, fee structures, and compliance systems. Borrowers with weaker credit may face reduced card availability if issuers tighten underwriting under the cap. Federal courts and regulators must enforce forfeiture, consumer recovery actions, and TILA liability claims.
Key Provisions
- Caps credit card APRs at 10 percentage points inclusive of finance charges.
- Limits non-finance-charge fees so they cannot evade the cap or exceed total finance charges.
- Creates forfeiture, consumer recovery, and TILA civil-liability remedies for knowing violations.
- Preserves stronger state laws and sunsets the federal cap on January 1, 2031.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Caps credit card annual percentage rates at 10 percentage points inclusive of finance charges, bars fee evasion by limiting non-finance-charge fees, creates forfeiture and consumer recovery remedies for knowing overcharges, preserves stronger state consumer protections, and sunsets the cap on January 1, 2031.
Key Policy Areas
Consumer Finance, Credit Cards, Banking
Primary Purpose
Caps credit card annual percentage rates at 10 percentage points inclusive of finance charges, bars fee evasion by limiting non-finance-charge fees, creates forfeiture and consumer recovery remedies for knowing overcharges, preserves stronger state consumer protections, and sunsets the cap on January 1, 2031.
Policy Domains
Resolution provisions
Identified Gains
- Credit card borrowers
- Consumers with over-cap charges
- Consumer finance attorneys
- State consumer-protection agencies
Identified Costs
- Credit card issuers
- Banks and card lenders
- Subprime credit card applicants
- Federal courts
Sponsors
Legislative Progress
In CommitteeMs. Ocasio-Cortez (for herself and Mrs. Luna) introduced the following …
Referred to the House Committee on Financial Services.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Consumers with over-cap charges, Credit card borrowers, Subprime credit card applicants
Banks and card lenders, Credit card issuers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology