Credit card interest rates have climbed above 20% for many Americans, and this bill would cap them at 10% — a dramatic drop. Introduced by Rep. Alexandria Ocasio-Cortez and Rep. Anna Paulina Luna (a rare left-right pairing), the bill bars card companies from using fees to get around the cap and gives consumers two years to sue if they're charged more. The rule would sunset on January 1, 2031. Anyone paying credit card interest would benefit directly, though banks argue it could shrink access to credit for higher-risk borrowers.
Congressional Summary
10 Percent Credit Card Interest Rate Cap Act This bill temporarily caps credit card interest rates at 10%.Creditors that knowingly violate this bill forfeit the entire interest of the debt. The bill also provides a private right of action for debtors to recover interest, finance charges, or fees. The action must be brought within two years of the violation. In addition, violations of this bill are subject to civil liability under the Truth in Lending Act, which is enforced by the Consumer Financial Protection Bureau and the Federal Trade Commission. These changes sunset on January 1, 2031.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-03-06
- Date Added
- 2026-04-19
- Source
- Congress.gov →
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