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December 16, 2009 -
H.R. 4300, a bill introduced on December 14, would set a national credit card usury rate of 16 percent. It would also cap credit card fees, such as late, insufficient funds or overdraft fees, at $15.
In a statement, co-sponsor of the bill Rep. Louise Slaughter (D-NY) stated that “The best gift we could give Americans in the new year would be to finally put an end to outrageous credit card interest rates that hurt hard-working people,” she said. “We must do what we can to help people who are trying to make ends meet in the face of card rates that suddenly jump to 20, 25, 30 percent or even more. It’s time for Congress to put the needs of people ahead of banks and card issuers. My intention is to hold a hearing at the Rules Committee on this legislation as quickly as possible.”
The 16 percent annual percentage rate (APR) would include any fee compensating a creditor or prospective creditor for opening or maintaining an account, such as a membership or an annual fee. The bill states that the Federal Reserve Board could make adjustments to the national APR if economic conditions warrant.
Regarding state usury laws, the bill would make clarifications to the Truth in Lending Act to ensure that H.R. 4300 would not annul, alter or affect state law unless those laws are inconsistent with the national standard.
You can view more on this bill at this link.
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