Bills · S 2781
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2781Finance and Financial Sector
Protecting Consumers from Unreasonable Credit Rates Act of 2025
INTRO SEP 11· LAST ACTION SEP 11
READING
8MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it directly addresses the problem of extremely high-cost credit that many financially vulnerable Americans currently face. Without a clear federal cap, interest rates and fees on various loans, from payday and car title loans to bank overdrafts, can effectively amount to hundreds or even thousands of percent annually. This often traps people in a cycle of debt, making it incredibly difficult to escape even small loan obligations, and costs consumers billions of dollars each year.
If this bill becomes law, it would establish a universal protection, ensuring that the total annual cost of most consumer loans cannot exceed 36%, regardless of where a person lives. This would mean significant financial relief for millions, helping to prevent debt spirals and making credit more affordable and transparent. If it doesn't pass, the current fragmented system of state-level regulations and the prevalence of very high-cost lending would continue, leaving many consumers exposed to what the bill identifies as harmful and "predatory" lending practices.
KEY PROVISIONS
5AI-extractedPROVISION 01
Establishes a national maximum annual interest rate of 36% for nearly all consumer credit transactions by amending the Truth in Lending Act.
This sets a firm federal limit on the total cost of borrowing, preventing extremely high-interest loans that can trap consumers in debt.
PROVISION 02
Defines the "fee and interest rate" broadly to include most charges associated with a loan, such as periodic rates, annual fees, cash advance fees, late fees, overdraft fees, and credit insurance premiums.
This prevents lenders from circumventing the interest rate cap by imposing excessive fees instead of interest.
PROVISION 03
Specifies certain limited fees (like small application fees, specific late fees, and insufficient funds fees) that are excluded from the 36% calculation for certain installment loans.
This provides some flexibility for lenders to cover administrative costs while largely maintaining the core consumer protection of the rate cap.
PROVISION 04
Clarifies that existing state laws providing greater consumer protection (e.g., lower rate caps) than this federal cap are not overruled.
This ensures states can still implement even stricter protections if they choose, allowing for stronger local oversight.
PROVISION 05
Applies existing civil liability and enforcement mechanisms under the Truth in Lending Act to violations of the new rate cap.
This provides a legal pathway for consumers to seek recourse and for regulators to enforce the new federal limit if lenders charge rates above the maximum.
SPONSORSHIP
1 + 2
D· Illinois
YRS IN OFFICE
43
BILLS LED
138
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 2 REP 0 IND 0
ACTION TIMELINE
2 EVENTSSEP 11
Introduced in Senate
SEP 11
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text: CR S6577)
BILL INFO
TypeSenate Bill
NumberS 2781
Congress119th
StatusIn Committee
IntroducedSep 11, 2025
Last actionSep 11, 2025
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IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED SEP 11, 2025
Senate BillS 2781Finance and Financial Sector
Protecting Consumers from Unreasonable Credit Rates Act of 2025
INTRODUCED SEP 11, 2025· LAST ACTION SEP 11, 2025
PASSAGE CHANCES
—%
READING
8 min
COSPONSORS
2
COMPLEXITY
Moderate
