119-s381

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 381 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 381

To amend the Truth in Lending Act to cap credit card interest rates at 
 10 percent.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 February 4, 2025

Mr. Sanders (for himself and Mr. Hawley) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
 and Urban Affairs

_______________________________________________________________________

 A BILL

To amend the Truth in Lending Act to cap credit card interest rates at 
 10 percent.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``10 Percent Credit Card Interest Rate 
Cap Act''.

SEC. 2. CAP ON CREDIT CARD INTEREST RATES.

    (a) In General.--

Section 107 of the Truth in Lending Act (15 U.S.C. 
1606) is amended by adding at the end the following:
 ``

    (f)

    (1) The annual percentage rate applicable to an extension of 
credit obtained by use of a credit card may not exceed 10 percentage 
points, inclusive of all finance charges.
 ``

    (2) Any fees that are not considered finance charges under 

section 106

    (a) may not be used to evade the limitations of paragraph

    (1) , and the total sum of such fees may not exceed the total amount of 
finance charges assessed.
 ``

    (3) The taking, receiving, reserving, or charging of a credit 
card annual percentage rate or fee greater than that permitted under 
this subsection, when knowingly done, shall be deemed a violation of 
this title, and a forfeiture of the entire interest which the note, 
bill, or other evidence of the obligation carries with it, or which has 
been agreed to be paid thereon.
 ``

    (4) If a credit card annual percentage rate or fee greater than 
that permitted under this subsection has been paid, the person by whom 
it has been paid, or the legal representative thereof, may, by bringing 
an action not later than 2 years after the date on which the usurious 
collection was last made, recover back from the lender in an action in 
the nature of an action of debt, the entire amount of interest, finance 
charges, or fees paid.
 ``

    (5) Any creditor who violates this subsection shall be subject to 
the provisions of 

section 130.
 ``

    (g) Nothing in this section may be construed to preempt any 
provision of State law that provides greater protection to consumers 
than is provided under this section.''.

    (b) Technical and Conforming Amendment.--

Section 130

    (a) of the 
Truth in Lending Act (15 U.S.C. 1640

    (a) ) is amended, in the matter 
preceding paragraph

    (1) , by inserting ``

section 107

    (f) ,'' before ``this 
chapter''.
            (c) Sunset.--

    (1) In general.--The Truth in Lending Act (15 U.S.C. 1601 
 et seq.) is amended--
        (A) in 

section 107 (15 U.S.C. 1606), by striking 
 subsections

    (f) and

    (g) ; and
        (B) in 

section 130

    (a) (15 U.S.C. 1640

    (a) ), in the 
 matter preceding paragraph

    (1) , by striking ``

section 107

    (f) ,''.

    (2) Effective date.--The amendments made by paragraph

    (1) shall take effect on January 1, 2031.
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