S.Amdt. 2239

SA 2239, submitted by Mr. Hawley and Mr. Sanders, aims to add a cap on credit card interest rates to bill S. 1582.

The amendment proposes the following changes to the Truth in Lending Act:

• Interest Rate Cap: The annual percentage rate for credit cards cannot exceed 10 percentage points, including all finance charges.
• Fee Restrictions: Fees not considered finance charges cannot be used to get around the rate limit, and the total of these fees cannot be more than the total finance charges assessed.
• Penalties: Knowingly charging a rate or fee above the limit is a violation that results in the forfeiture of the entire interest.
• Consumer Recovery: People who paid a rate or fee above the limit can sue to recover the full amount of interest, finance charges, or fees paid, as long as the action is brought within 2 years of the last usurious collection.
• State Law: This section does not override any State law that offers consumers more protection.
• Sunset Date: These changes are set to take effect on January 1, 2031, at which point the amendments are stricken.