Protecting Consumers from Unreasonable Credit Rates Act of 2025

This bill would amend the Truth in Lending Act to bar creditors from extending consumer credit when the combined fee and interest rate is above 36 percent a year. The rate would count interest plus most fees, including late fees, overdraft fees, credit insurance, add-on products, and costs of earned-wage advance products, with limited exceptions for small application, late, and insufficient-funds fees on certain installment loans. Loans made in violation would be void, and creditors would have to return principal, interest, and fees to the borrower. Violators could face up to 1 year in prison and a fine of at least $50,000 per violation, and state attorneys general could sue to enforce the limit. Stronger state consumer protections would not be overridden.

Full text and official record on Congress.gov

Sponsors

• Richard J. Durbin Democrat sponsor
• 2 cosponsors