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Senate Majority Whip Dick Durbin introduced legislation late Thursday that would set a federal usury cap on all consumer credit transactions, including payday and auto loans.
The bill would create a 36% annual percentage rate cap that takes into account all interest, fees, defaults, and other finance charges.
"Excessive rates are often hidden and can have crippling effects on those individuals who can afford it least," said the Illinois Democrat in a press release. "Congress must enact protections against predatory lending. America's working families depend on it."
The bill would recognize states' roles in setting stricter standards, provide enforcement through civil penalties, and allow state attorneys general to take action up to three years after an alleged violation.
