Usury Laws and Limits on Credit Card Interest Rates

September 20，2024 BY America-Today

Federal law doesn't mandate interest rate limits for credit cards. But, credit card companies must follow certain federal rules.

One of these rules is the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (Credit CARD Act).

Some states have usury laws. These laws limit the interest a lender may charge on a debt. But, federal court decisions and

statutes have virtually exempted credit card companies from this rule. This is because credit card companies can charge

customers, regardless of their state, the interest rates allowed by the company's home state.

This means there are no limits on credit card interest rates in practice. So, the best way to protect yourself as a borrower is

to stay informed about your federally guaranteed rights to interest rate disclosures and other protections.

See FindLaw's Financial Consumer Protection section for more related information.