WeVote
Log In

Bill

Bill

HR 1944

10 Percent Credit Card Interest Rate Cap Act

119th Congress Introduced by Anna Luna and 1 co-sponsor

The 10 Percent Credit Card Interest Rate Cap Act limits credit card interest rates to 10%, protecting consumers from high debt costs and promoting fair lending practices.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 1944

Summary of HR 1944: 10 Percent Credit Card Interest Rate Cap Act

Purpose and Intent

The 10 Percent Credit Card Interest Rate Cap Act (HR 1944) aims to establish a federal cap on credit card interest rates, limiting them to a maximum of 10% per annum. The bill seeks to alleviate the financial burden on consumers who often face exorbitant interest rates on credit card debt, thereby promoting fair lending practices and enhancing consumer protection.

Key Provisions

  • Interest Rate Cap: The primary provision of the bill is to set a cap on credit card interest rates at 10%. This would apply to all credit card issuers operating within the United States.
  • Regulatory Enforcement: The bill mandates that the Consumer Financial Protection Bureau (CFPB) will oversee compliance with the new interest rate cap, ensuring that credit card companies adhere to the established limit.
  • Consumer Protections: Additional provisions may include enhanced disclosures for consumers regarding interest rates and fees, aimed at promoting transparency in credit card agreements.

Who Would Be Affected

  • Consumers: The bill is designed to directly benefit consumers who rely on credit cards for purchases and may struggle with high-interest debt. By capping interest rates, consumers could save significantly on interest payments.
  • Credit Card Issuers: Financial institutions that issue credit cards will be impacted, as they will need to adjust their pricing structures to comply with the new cap. This may affect their profitability and lending practices.

Legislative Process and Timeline

  • Introduced: The bill was introduced in the House on March 6, 2025.
  • Referred to Committee: On the same day, it was referred to the House Committee on Financial Services for further consideration.
  • Cosponsors: The bill is primarily sponsored by Alexandria Ocasio-Cortez and has a cosponsor, Anna Paulina Luna.

Related Legislation

  • S 381: This bill has a companion in the Senate, which may facilitate discussions and potential passage of similar measures in both chambers of Congress.

Conclusion

The 10 Percent Credit Card Interest Rate Cap Act represents a significant legislative effort to protect consumers from high credit card interest rates. By capping rates at 10%, the bill aims to foster a more equitable financial environment for consumers while imposing new regulations on credit card issuers. As the bill progresses through the legislative process, its implications for both consumers and the financial industry will be closely monitored.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.