10 Percent Credit Card Interest Rate Cap Act
Sponsored By: Representative Ocasio-Cortez
Introduced
Summary
Would cap credit card APRs at 10 percentage points and block fee tactics that sidestep that limit. This bill would amend the Truth in Lending Act to treat the cap as inclusive of all finance charges and to limit other fees so they cannot be used to evade the rate cap.
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- Borrowers could sue within 2 years to recover the full amount of interest, finance charges, or fees they paid that exceed the cap.
- Creditors who knowingly charge an APR or fees above the cap would forfeit all interest on the obligation and face enforcement under existing Truth in Lending remedies.
- Non-finance fees may not be used to evade the cap and the total of such fees may not exceed the finance charges assessed.
- State consumer protections that are stronger than this federal cap would remain in force.
- The cap and related amendments would be temporary and revert to prior law on Jan. 1, 2031.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
10% cap on credit card rates
This bill would cap credit card APRs at 10% a year, including all finance charges. Card issuers could not use extra fees to dodge the cap. Non-finance fees could not be more than your total finance charges. The cap would start at enactment and end on January 1, 2031.
Rate cap and remedies end in 2031
As written, the 10% cap and fee limits would end on January 1, 2031. After that, card issuers would not be bound by those limits. The recovery tools tied to the cap would also end.
Get back over-the-cap card charges
If enacted, you could sue if you were charged over the legal cap. The issuer must have done it knowingly. You could recover all interest, finance charges, and fees you paid. You must file within two years of the last overcharge. These rights would start at enactment and end on January 1, 2031.
Sponsors & CoSponsors
Sponsor
Ocasio-Cortez
NY • D
Cosponsors
Rep. Luna, Anna Paulina [R-FL-13]
FL • R
Sponsored 3/6/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov