Ocasio-Cortez, Luna Introduce Bill to Cap Credit Card Interest Rates at 10%

Washington, D.C.– Representative Alexandria Ocasio-Cortez (NY-14) and Representative Anna Paulina Luna (FL-13) introduced legislation that would immediately cap credit card interest rates at 10%. Senators Bernie Sanders (I-VT) and Josh Hawley (R-MO) introduced companion legislation last month in the Senate. 

“Credit cards with high interest rates regularly trap working people in endless cycles of debt. At a time when families are struggling to make ends meet, we cannot allow big banks to shake down our communities for profit. During his campaign, President Trump pledged to cap credit card interest rates at 10%. We're making that pledge more than a talking point by introducing legislation to protect working people from remaining trapped under mountains of debt,” said Representative Alexandria Ocasio-Cortez.

“I’m proud to be the bipartisan co-lead to this legislation. For too long, credit card companies have abused working class Americans with absurd interest rates, trapping them in an almost insurmountable amount of debt. We need a fair solution - and that means getting rid of the status quo and putting a reasonable cap on interest rates,” said Representative Anna Paulina Luna.

The full bill text is available here.

While banks borrow at the federal interest rate of 4.25%, credit card interest rates have nearly doubled over the last decade to 23.8%, allowing credit card companies to reap massive profits while consumers struggle to keep up with debt.

In 2019, Representative Ocasio-Cortez (NY-14) and Senator Bernie Sanders (I-VT)  introduced the Loan Shark Prevention Act to impose a 15% federal cap on interest rates.

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