I
119THCONGRESS
1
STSESSION H. R. 1944
To amend the Truth in Lending Act to cap credit card interest rates at
10 percent.
IN THE HOUSE OF REPRESENTATIVES
MARCH6, 2025
Ms. O
CASIO-CORTEZ(for herself and Mrs. LUNA) introduced the following bill;
which was referred to the Committee on Financial Services
A BILL
To amend the Truth in Lending Act to cap credit card
interest rates at 10 percent.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘10 Percent Credit Card 4
Interest Rate Cap Act’’. 5
SEC. 2. CAP ON CREDIT CARD INTEREST RATES. 6
(a) I
NGENERAL.—Section 107 of the Truth in Lend-7
ing Act (15 U.S.C. 1606) is amended by adding at the 8
end the following: 9
VerDate Sep 11 2014 01:08 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1944.IH H1944
kjohnson on DSK7ZCZBW3PROD with $$_JOB 2
•HR 1944 IH
‘‘(f)(1) The annual percentage rate applicable to an 1
extension of credit obtained by use of a credit card may 2
not exceed 10 percentage points, inclusive of all finance 3
charges. 4
‘‘(2) Any fees that are not considered finance charges 5
under section 106(a) may not be used to evade the limita-6
tions of paragraph (1), and the total sum of such fees may 7
not exceed the total amount of finance charges assessed. 8
‘‘(3) The taking, receiving, reserving, or charging of 9
a credit card annual percentage rate or fee greater than 10
that permitted under this subsection, when knowingly 11
done, shall be deemed a violation of this title, and a for-12
feiture of the entire interest which the note, bill, or other 13
evidence of the obligation carries with it, or which has 14
been agreed to be paid thereon. 15
‘‘(4) If a credit card annual percentage rate or fee 16
greater than that permitted under this subsection has 17
been paid, the person by whom it has been paid, or the 18
legal representative thereof, may, by bringing an action 19
not later than 2 years after the date on which the usurious 20
collection was last made, recover back from the lender in 21
an action in the nature of an action of debt, the entire 22
amount of interest, finance charges, or fees paid. 23
‘‘(5) Any creditor who violates this subsection shall 24
be subject to the provisions of section 130. 25
VerDate Sep 11 2014 01:08 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1944.IH H1944
kjohnson on DSK7ZCZBW3PROD with $$_JOB 3
•HR 1944 IH
‘‘(g) Nothing in this section may be construed to pre-1
empt any provision of State law that provides greater pro-2
tection to consumers than is provided under this section.’’. 3
(b) T
ECHNICAL AND CONFORMINGAMENDMENT.— 4
Section 130(a) of the Truth in Lending Act (15 U.S.C. 5
1640(a)) is amended, in the matter preceding paragraph 6
(1), by inserting ‘‘section 107(f),’’ before ‘‘this chapter’’. 7
(c) S
UNSET.— 8
(1) I
N GENERAL.—The Truth in Lending Act 9
(15 U.S.C. 1601 et seq.) is amended— 10
(A) in section 107 (15 U.S.C. 1606), by 11
striking subsections (f) and (g); and 12
(B) in section 130(a) (15 U.S.C. 1640(a)), 13
in the matter preceding paragraph (1), by strik-14
ing ‘‘section 107(f),’’. 15
(2) E
FFECTIVE DATE.—The amendments made 16
by paragraph (1) shall take effect on January 1, 17
2031. 18
Æ
VerDate Sep 11 2014 01:08 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1944.IH H1944
kjohnson on DSK7ZCZBW3PROD with $$_JOB