10 Percent Credit Card Interest Rate Cap Act

This proposal would set a hard 10% annual interest cap on credit cards. It also blocks card companies from using extra fees to get around the cap. If a lender knowingly charges over the limit, they lose the right to collect any interest on that debt. People who paid over-the-limit interest or fees could sue to get back all of those charges, as long as they file within two years of the last improper charge. States can still keep or pass stronger consumer protections. The cap would end on January 1, 2031, unless Congress acts again.

Key points

• Who is affected: Credit card users and card issuers.
• What changes: Interest on credit cards capped at 10% APR; extra fees can’t be used to dodge the cap; violators forfeit interest; consumers can sue to recover all improper interest and fees.
• When: Takes effect upon enactment; the cap sunsets on January 1, 2031.