Alexandria Ocasio-Cortez (D-NY)
10 Percent Credit Card Interest Rate Cap Act
A Democratic bill with 1 Republican cosponsor · See the cosponsor
Last activity — Referred to the House Committee on Financial Services.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill, known as the "10 Percent Credit Card Interest Rate Cap Act," aims to amend the Truth in Lending Act. It proposes to cap the annual percentage rate for credit cards at 10 percent, including all finance charges. The legislation includes provisions to prevent lenders from using other fees to bypass this limit. It also establishes penalties for creditors who knowingly charge interest or fees above this cap. Additionally, it allows consumers to take legal action to recover excess interest or fees paid. Finally, these new rules are set to expire on January 1, 2031.
Yes· 3 of 6
- Scored +8
Does this give people more protection from unfair business practices?
The bill mandates a 10 percent cap on credit card interest rates and allows consumers to recover excess fees paid.
- Scored +7
Would households on low incomes be better off under this?
Capping interest rates provides significant financial relief to low-income individuals who rely on credit.
- Scored +5
Would students be better off under this?
Lower interest rates can help students manage credit card debt more effectively.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Interest Rate Limit: The annual percentage rate for credit cards would be capped at 10 percentage points, including all finance charges (Section 2(a)(1)). This limits how much interest people are charged on their credit card debt.
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Fee Limitations: It prevents lenders from using fees that are not considered finance charges to get around the interest cap (Section 2(a)(2)). This ensures the total sum of such fees does not exceed the total amount of finance charges assessed.
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Recovery of Excess Payments: If a person has paid an annual percentage rate or fee higher than the permitted amount, they can bring an action within 2 years to recover the entire amount of interest, finance charges, or fees paid (Section 2(a)(4)).
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Protection Against Usury: Any creditor that knowingly charges a rate or fee greater than the permitted amount will be in violation of the title and face forfeiture of the entire interest owed (Section 2(a)(3)).
Potential Negative Impacts for People
- Sunset Provision: The amendments to the Truth in Lending Act are scheduled to take effect and then be struck from the act on January 1, 2031 (Section 2(c)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — Capping interest rates provides significant financial relief to low-income individuals who rely on credit. Would students be better off under this? — Lower interest rates can help students manage credit card debt more effectively. Would middle-income households be better off under this? — Lower interest rates reduce the cost of carrying credit card balances for middle-income families. Would retired people be better off under this? — Reducing interest costs helps retirees manage their ongoing monthly expenses.
- Economy And Finance
- Does this give people more protection from unfair business practices? — The bill mandates a 10 percent cap on credit card interest rates and allows consumers to recover excess fees paid.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Limiting credit card interest rates can reduce the debt burden on low-income households.
- 3/6/2025
- Referred to the House Committee on Financial Services.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Anna Paulina LunaRepublican · Florida