‘(a) In General- Notwithstanding any other provision of law, no creditor may make an extension of credit to a consumer with respect to which the annual percentage credit rate, as defined in subsection (b), exceeds 36 percent.
‘(b) Annual Percentage Credit Rate Defined- For purposes of this section, the annual percentage credit rate includes all charges payable directly or indirectly incident to, ancillary to, or as a condition of the extension of credit, including--
‘(1) any payment compensating a creditor or prospective creditor for an extension of credit or making available a line of credit, or any default or breach by a borrower of a condition upon which credit was extended, including fees connected with credit extension or availability, such as numerical periodic rates, late fees, excessive creditor-imposed not sufficient funds fees charged when a borrower tenders payment on a debt with a check drawn on insufficient funds, over limit fees, annual fees, cash advance fees, and membership fees;
‘(2) all fees which constitute a finance charge, as defined by rules of the Board in accordance with this title;
‘(3) credit insurance premiums, whether optional or required; and
‘(4) all charges and costs for ancillary products sold in connection with or incidental to the credit transaction.
‘(c) Relation to State Law- Nothing in this section may be construed to preempt any provision of State law that provides greater protection to consumers than is provided in this section.
‘(d) Civil Liability and Enforcement- In addition to remedies available to the consumer under section 130(a), any payment compensating a creditor or prospective creditor, to the extent that such payment is a transaction made in violation of this section, shall be null and void, and not enforceable by any party in any court or alternative dispute resolution forum, and the creditor or any subsequent holder shall promptly return to the consumer any principal, interest, charges, and fees, and any security interest associated with such transaction. Notwithstanding any statute of limitations or repose, a violation of this section may be raised as a matter of defense by recoupment or set off to an action to collect such debt or repossess related security at any time.
‘(e) Violations- Any person that violates this section, or seeks to enforce an agreement made in violation of this section, shall be subject to, for each such violation, 1 year in prison and a fine in an amount equal to the greater of--
‘(f) State Attorneys General- An action to enforce this section may be brought by the appropriate State attorney general in any United States district court or any other court of competent jurisdiction within 3 years from the date of the violation, and may obtain injunctive relief.’.
U.S. Congress - Text of S.3287 as Introduced in Senate Protecting Consumers from Unreasonable Credit Rates Act of 2008
