Sponsors (3)
The bill protects borrowers by capping total consumer credit costs and improving transparency and enforcement, but those protections may shrink availability of some small-dollar credit and shift costs to lenders, customers, or taxpayers.
Low- and middle-income borrowers: the bill caps total cost of consumer credit at 36%, limiting excessive interest and fees on loans and credit cards.
Low-income borrowers: creates or preserves more affordable small-dollar loan alternatives (minimal/no fees and installment options), making short-term credit less costly.
Consumers (including low-income borrowers): requires inclusive APR-like calculations so advertised/assessed rates reflect most fees, improving price transparency and helping people comparison-shop.
Low-income and other high-risk borrowers: a strict national cap could reduce availability of small-dollar or high-risk credit if some lenders exit the market or tighten underwriting.
Taxpayers and other banking customers: financial institutions may shift costs (raising other fees or charges) to offset lost revenue from capped high‑cost products, indirectly increasing costs for others.
Small lenders and third‑party providers: compliance, product redesign, and operational costs to implement broad fee inclusion and new calculation rules could be significant for small businesses.
Based on analysis of 4 sections of legislative text.
Establishes a nationwide 36% annual cap that counts most fees and interest on consumer credit, voids excess charges, and adds civil and criminal penalties.
Introduced September 11, 2025 by Richard Joseph Durbin · Last progress September 11, 2025
Creates a federal 36% annual cap that counts interest plus most fees on consumer credit nationwide, closes common loopholes used to escape state rate limits, and requires return of amounts charged above the cap. It gives the Consumer Financial Protection Bureau authority to set calculation details and disclosures but forbids exemptions from the rate cap, adds criminal penalties and civil remedies, and changes Truth in Lending open‑end disclosure language.