TAMPA, Florida – Representatives Alexandria Ocasio-Cortez (D-NY) and Anna Paulina Luna (R-FL) have introduced legislation to cap credit card interest rates at 10%, targeting what they call predatory practices by financial institutions. The bill, introduced on March 7, 2025, has garnered support from Senators Bernie Sanders (I-VT) and Josh Hawley (R-MO), who are championing a companion measure in the Senate.
The legislation, titled the Credit Card Interest Rate Cap Act of 2025, aims to amend the Truth in Lending Act by setting a national usury ceiling on credit card interest rates.
With current average rates hovering near 23%—far above the federal borrowing rate of approximately 4.25%—the lawmakers argue that the measure will provide relief to millions of Americans burdened by mounting debt.
The bill’s text (a PDF linked on Representative Ocasio-Cortez’s official website here) outlines a straightforward approach to reining in high interest charges.
Under the proposed law, the annual percentage rate (APR) on credit card balances, including all finance charges, would be limited to 10%. To prevent evasion, the bill stipulates that additional fees not classified as finance charges cannot exceed the total amount of finance charges assessed, closing potential loopholes. Creditors found in violation could face civil penalties, with punitive damages capped at $500,000 per infraction. If enacted, the cap would take effect 180 days after passage, giving the industry time to adapt.
“This is about fairness for working families,” Ocasio-Cortez said in a press release. She tied the proposal to a campaign promise by President Donald Trump to cap credit card rates at 10%, framing it as a bipartisan fulfillment of that pledge.
“For too long, credit card companies have abused working-class Americans with absurd interest rates, trapping them in an almost insurmountable amount of debt,” Luna stated in a post on X.
“We need a fair solution — and that means getting rid of the status quo and putting a reasonable cap on interest rates.”
