A bill that would create a new national cap on credit card interest rates is scheduled for a hearing before the House Rules Committee on January 27th. Introduced by Rep. Louise M. Slaugther, D-New York, and Rep. John Tierney, D-Massachusetts, the bill would forbid any financial institution that issues a credit card from levying interest rates higher than 16 percent. It would also put a $15 limit on fees including late payments and overdrafts.

The Senate rejected a similar bill last year that would cap national credit card interest rates at 15 percent. Introduced by Sen. Bernard Sanders, an Independent from Vermont, the legislation received 33 out of the 60 votes necessary to pass.

Currently, there is no limit on the interest rates that banks or other financial institutions can charge credit card customers. Over the last year, major institutions like Bank of America, Capital One, and Citigroup have raised the rates that many cardholders pay to 30% or more. – David K. Randall