10 Percent Credit Card Interest Rate Cap Act

Senate Bill

S. 381

119th Congress

10 Percent Credit Card Interest Rate Cap Act

In Committee

Introduced:Feb 4, 2025

Primary Sponsor

Bernard Sanders

I - VT

Cosponsors

3

Quick Stats

Policy Area

Finance and Financial Sector

Summary

This bill temporarily caps credit card interest rates at 10% through January 1, 2031. Violating creditors forfeit all interest on the debt. Debtors can sue to recover interest, finance charges, or fees within two years of violation. The CFPB and FTC enforce the cap through Truth in Lending Act provisions.

Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

AI Summary

Plain-English explanation of this bill

This bill temporarily caps credit card interest rates at 10% through January 1, 2031. Violating creditors forfeit all interest on the debt. Debtors can sue to recover interest, finance charges, or fees within two years of violation. The CFPB and FTC enforce the cap through Truth in Lending Act provisions.

Last updated: 12/30/2025

Official Summary

Congressional Research Service 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.

Key Points

Main provisions of the bill

Caps credit card interest rates at 10%
Temporary cap through January 1, 2031
Violators forfeit entire debt interest
Private right of action for debtors
CFPB and FTC enforcement authority
Two-year statute of limitations for claims

How This Impacts Americans

Potential effects on citizens and communities

This bill would dramatically reduce credit card interest rates, which currently average over 20%. Supporters argue high rates trap consumers in debt cycles and that a cap would provide relief to struggling families. Critics contend it could reduce credit availability as lenders may decline riskier borrowers they cannot profitably serve at 10%. The temporary sunset allows evaluation of impacts before permanent implementation.

Policy Areas

Primary Policy Area

Finance and Financial Sector

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

381, 119th Congress (2025). "10 Percent Credit Card Interest Rate Cap Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-381