To amend the Truth in Lending Act to establish a national usury rate for consumer credit transactions.
Summary
What This Bill Does
The bill creates congressional findings on predatory lending practices and need for national usury cap, requires national 36% maximum fee-and-interest rate cap on all consumer credit extensions, with broad fee-inclusive definition, tolerances for certain small charges on installment loans, calculation methods for open-end, and requires statutory text of new Section 140B of Truth in Lending Act: 36% maximum rate, FAIR definition, tolerances, calculation methods, creditor definition, exemption prohibition, disclosure requirements, state law. It relies on reporting requirements, definition changes, price controls, and compliance mandates. The main policy areas are Finance and Technology.
Who Benefits and How
State attorneys general could see lower costs, Low-income and subprime borrowers could see lower costs, and Credit insurance providers could gain revenue opportunities.
Who Bears the Burden and How
Payday lenders would take on compliance duties, Car title lenders would take on compliance duties, and Online high-cost installment lenders would take on compliance duties.
Key Provisions
- Creates congressional findings on predatory lending practices and need for national usury cap.
- Requires national 36% maximum fee-and-interest rate cap on all consumer credit extensions, with broad fee-inclusive definition, tolerances for certain small charges on installment loans, calculation methods for open-end...
- Requires statutory text of new Section 140B of Truth in Lending Act: 36% maximum rate, FAIR definition, tolerances, calculation methods, creditor definition, exemption prohibition, disclosure requirements, state law...
- Requires amendment to Truth in Lending Act Section 127(b)(6) requiring disclosure of fee and interest rate (FAIR) for open-end credit plans.
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
The bill creates congressional findings on predatory lending practices and need for national usury cap, requires national 36% maximum fee-and-interest rate cap on all consumer credit extensions, with broad fee-inclusive definition, tolerances for certain small charges on installment loans, calculation methods for open-end, and requires statutory text of new Section 140B of Truth in Lending Act: 36% maximum rate, FAIR definition, tolerances, calculation methods, creditor definition, exemption prohibition, disclosure requirements, state law.
Key Policy Areas
Finance, Technology
Primary Purpose
The bill creates congressional findings on predatory lending practices and need for national usury cap, requires national 36% maximum fee-and-interest rate cap on all consumer credit extensions, with broad fee-inclusive definition, tolerances for certain small charges on installment loans, calculation methods for open-end, and requires statutory text of new Section 140B of Truth in Lending Act: 36% maximum rate, FAIR definition, tolerances, calculation methods, creditor definition, exemption prohibition, disclosure requirements, state law.
Policy Domains
Whole bill
Identified Gains
- State attorneys general
- Low-income and subprime borrowers
- Credit insurance providers
- Community Development Financial Institutions (CDFIs)
- Credit card issuers (high-fee products)
Identified Costs
- Payday lenders
- Car title lenders
- Online high-cost installment lenders
- Earned wage access providers
- Credit card issuers
Sponsors
Legislative Progress
IntroducedMr. Durbin (for himself, Mr. Blumenthal, and Mr. Whitehouse) introduced …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Banks (overdraft services), Credit card issuers, Credit card issuers (high-fee products)
Consumers (low-income borrowers), Consumers with open-end credit, Low-income and subprime borrowers
Community Development Financial Institutions (CDFIs)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "federal_implementing_agencies"
- → Federal agencies assigned duties by the bill
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