National 36% Cap on Consumer Credit Interest Rates and Fees
This act establishes a national 36% annual interest rate cap for consumer credit, including all associated fees. It aims to protect citizens from predatory lending practices, such as payday and car title loans, which often carry exorbitant interest rates. This will lead to lower borrowing costs for consumers and curb abusive credit practices.
Key points
Establishes a national maximum interest rate of 36% per year for consumer credit, encompassing all fees and charges.
Limits high costs associated with loans like payday loans, car title loans, and overdraft fees.
Ensures that credit agreements violating this cap are null and void, requiring creditors to return principal, interest, and fees to consumers.
Empowers State attorneys general to enforce the act, pursue injunctive relief, and impose penalties including fines and imprisonment for violations.
Introduced
Citizen Poll