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119-s-381119th CongressWALLET

10 Percent Credit Card Interest Rate Cap Act

Sponsored By: Senator Sanders, Bernard [I-VT]

Introduced

Summary

Caps credit card APRs at 10% nationwide. This bill would limit the annual percentage rate on credit-card extensions of credit to 10 percent inclusive of all finance charges and would include penalties and a private right of action. The cap and related rules would expire on January 1, 2031.

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  • Consumers and families: Cardholders would be covered by a 10% APR cap that counts all finance charges. Borrowers could sue within two years of the last usurious collection to recover interest, finance charges, or fees they paid.
  • Creditors and issuers: Lenders who knowingly charge an APR or fees above the limit would forfeit the entire interest stated in the account. The bill bars non-finance-charge fees from being used to evade the cap and limits those fees to no more than the total finance charges.
  • Enforcement and state law: Violations would be subject to civil liability under the Truth in Lending Act and enforced by the Consumer Financial Protection Bureau and the Federal Trade Commission. The bill allows states to keep or adopt stronger consumer protections.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

10% cap on credit card interest

If enacted, you could not be charged more than a 10% APR on credit cards. That 10% would include all finance charges. Creditors could not use other fees to get around the cap. Those extra fees could not be more than the finance charges assessed. If a cardholder knowingly paid interest or fees above the cap, they could sue within 2 years to recover all interest, finance charges, and fees paid. A knowing violation could also forfeit the entire stated interest. The cap and these remedies would begin on enactment and end January 1, 2031.

Sponsors & CoSponsors

Sponsor

Sanders, Bernard [I-VT]

VT • I

Cosponsors

  • Sen. Hawley, Josh [R-MO]

    MO • R

    Sponsored 2/4/2025

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 3/11/2025

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 10/8/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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