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National 36% Cap on Consumer Credit Rates and Fees.

This bill establishes a nationwide maximum annual rate of 36% on the total cost of consumer credit, including all interest, fees, and associated charges. The goal is to stop predatory lending practices, such as payday loans and high overdraft fees, which currently charge rates up to 400% or more. If a loan violates this 36% cap, it is considered null and void, and the lender must return all collected funds.
Key points
Establishes a national maximum annual rate of 36% on the total cost of consumer credit (interest plus all fees) across the United States.
The cap includes all hidden costs, such as overdraft fees, late fees, credit insurance, and membership fees, to prevent loopholes.
Loans issued in violation of the 36% limit are void, and lenders face severe financial penalties and potential imprisonment.
State laws providing greater consumer protection remain effective and are not overridden by this federal cap.
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Additional Information
Print number: 118_S_2730
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2023-09-06
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Protecting Consumers from Unreasonable Credit Rates Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2730.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-09-06.

What are the main provisions?

Key points include:

  • Establishes a national maximum annual rate of 36% on the total cost of consumer credit (interest plus all fees) across the United States.
  • The cap includes all hidden costs, such as overdraft fees, late fees, credit insurance, and membership fees, to prevent loopholes.
  • Loans issued in violation of the 36% limit are void, and lenders face severe financial penalties and potential imprisonment.
  • State laws providing greater consumer protection remain effective and are not overridden by this federal cap.
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 2025-12-26.

CATEGORIES

Economy