Bills · S 381
IN COMMITTEE· 119TH CONGRESS
Senate BillS 381Finance and Financial Sector
10 Percent Credit Card Interest Rate Cap Act
INTRO FEB 4· LAST ACTION FEB 4
READING
3MIN
COSPONSORS
3BIPARTISAN
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 aims to directly address the burden of high-interest credit card debt that many Americans face. Currently, credit card interest rates can often exceed 20% or even 30%, making it difficult for people to pay off their balances, even when making regular payments. If this bill becomes law, it would drastically reduce the cost of borrowing on credit cards, potentially freeing up household income and preventing individuals from falling deeper into debt.
Without this bill, credit card interest rates would likely continue to be set by market forces, which often result in very high rates, especially for those with less-than-perfect credit. Enacting this law would fundamentally change the landscape of consumer credit, making credit card debt more affordable but potentially also altering credit availability, especially for those considered high-risk by lenders. Voters should care because it impacts personal finances, debt levels, and the overall accessibility of credit in the economy.
KEY PROVISIONS
5AI-extractedPROVISION 01
Caps credit card annual percentage rates (APRs) at 10%, including all finance charges.
This directly limits how much interest consumers can be charged, potentially saving them significant money on debt.
PROVISION 02
Prevents credit card companies from using other fees to evade the 10% interest rate cap.
This closes a potential loophole, ensuring the spirit of the 10% cap is maintained and consumers are truly protected.
PROVISION 03
Establishes that knowingly charging a rate or fee above the limit is a violation, leading to forfeiture of all interest.
This provides a strong deterrent for lenders and gives consumers recourse if they are overcharged.
PROVISION 04
Allows consumers to recover excess interest or fees paid by suing the lender within two years.
This empowers consumers to reclaim money if they were illegally overcharged, acting as a direct consumer protection mechanism.
PROVISION 05
Includes a sunset provision, meaning the interest rate cap will automatically expire on January 1, 2031.
This means the law is not permanent and would require new legislation to extend or reinstate after this date, allowing for future reevaluation.
SPONSORSHIP
1 + 3
I· Vermont
YRS IN OFFICE
35
BILLS LED
56
COSPONSOR BREAKDOWNBIPARTISAN · 66%
DEM 2 REP 1 IND 0
ACTION TIMELINE
2 EVENTSFEB 4
Introduced in Senate
FEB 4
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
BILL INFO
TypeSenate Bill
NumberS 381
Congress119th
StatusIn Committee
IntroducedFeb 4, 2025
Last actionFeb 4, 2025
READER REACTIONS
OVERALL SENTIMENT
No reactions yet. Be the first to weigh in.
Discussion
Loading comments...
IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED FEB 4, 2025
Senate BillS 381Finance and Financial Sector
10 Percent Credit Card Interest Rate Cap Act
INTRODUCED FEB 4, 2025· LAST ACTION FEB 4, 2025
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
3
COMPLEXITY
Moderate
