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Curbing High Loan Costs: 36% Maximum Interest Rate

This act aims to protect consumers from excessively high loan fees by establishing a national 36% cap on interest and all related charges. This means citizens will pay less for credit products like payday loans or car title loans, preventing excessive debt and unfair practices. The law will make it easier to understand the true cost of loans and ensure greater transparency.
Key points
Establishes a national 36% cap on annual interest rates and all fees for consumer credit transactions, protecting against predatory lending.
Covers a wide range of charges, including annual fees, cash advance fees, late fees, overdraft fees, and credit insurance premiums.
Exemptions from the 36% cap include small application fees (up to $30 or 5% of credit limit, max $120), late fees (up to $20 per month), and insufficient funds fees (up to $15).
Violations of the act can result in voided transactions, consumer refunds, and penalties for lenders, including fines and imprisonment.
Empowers State attorneys general to take legal action against violations, providing additional consumer protection.
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Expired
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Additional Information
Print number: 117_S_2349
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2021-07-14
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Protecting Consumers from Unreasonable Credit Rates Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_2349.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-07-14.

What are the main provisions?

Key points include:

  • Establishes a national 36% cap on annual interest rates and all fees for consumer credit transactions, protecting against predatory lending.
  • Covers a wide range of charges, including annual fees, cash advance fees, late fees, overdraft fees, and credit insurance premiums.
  • Exemptions from the 36% cap include small application fees (up to $30 or 5% of credit limit, max $120), late fees (up to $20 per month), and insufficient funds fees (up to $15).
  • Violations of the act can result in voided transactions, consumer refunds, and penalties for lenders, including fines and imprisonment.
  • Empowers State attorneys general to take legal action against violations, providing additional consumer protection.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Durbin, Richard J. [D-IL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Economy Courts and Law