Predatory Lending Elimination Act

The Predatory Lending Elimination Act (S 3549) would extend the military lending rate cap - currently protecting service members and their families - to most consumer credit products, including credit cards, while exempting residential mortgages, car loans used solely for vehicle purchases, and Federal credit union loans. It sets a maximum interest rate and restricts certain fees on credit cards, such as those for credit insurance and ancillary products, to prevent hidden costs. States may enforce these rules through their attorneys general or regulators within three years of a violation, and the Consumer Financial Protection Bureau must issue implementing rules within one year that align with existing military lending protections. This bill directly affects creditors offering consumer credit and aims to limit predatory lending practices across most credit markets.