S.582 - Interest Rate Reduction Act111th Congress (2009-2010)
|Sponsor:||Sen. Sanders, Bernard [I-VT] (Introduced 03/12/2009)|
|Committees:||Senate - Banking, Housing, and Urban Affairs|
|Latest Action:||Senate - 03/12/2009 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (All Actions)|
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Summary: S.582 — 111th Congress (2009-2010)All Information (Except Text)
Introduced in Senate (03/12/2009)
Interest Rate Reduction Act - Amends the Truth in Lending Act to prohibit the annual percentage rate of interest (APR) applicable to any extension of credit to a consumer from exceeding 15% on unpaid balances, inclusive of all finance charges.
Authorizes the Board of Governors of the Federal Reserve System to establish an APR ceiling exceeding the 15% annual rate for periods not to exceed 18 months, upon a determination that: (1) money market interest rates have risen over the preceding six-month period; and (2) prevailing interest rate levels threaten the safety and soundness of individual lenders, as evidenced by adverse trends in liquidity, capital, earnings, and growth.
Declares the interest rate limitation inapplicable to an extension of credit by an insured credit union.
Subjects a creditor who violates this Act to a civil penalty.