“To amend the Truth in Lending Act to cap credit card interest rates at 10 percent.”
No CRS summary available for this bill.
This section establishes a cap on the annual percentage rate (APR) for any extension of credit obtained by use of a credit card at 10 percentage points (previously uncapped), inclusive of all finance charges, through December 31, 2030. It prohibits using fees that are not finance charges under TILA section 106(a) to evade the cap, limits such fees to the total finance charges assessed, deems knowing violations a forfeiture of all interest and fees with borrower recovery actions available within two years, and subjects violators to civil liability under TILA section 130. The section clarifies that it does not preempt state laws providing greater consumer protections and makes a conforming amendment to TILA section 130(a) to incorporate the new cap provision.