Protecting Consumers from Unreasonable Credit Rates Act of 2025

This bill establishes a federal 36% maximum interest rate for most consumer credit products, directly affecting borrowers using high-cost loans like payday, car title, and overdraft services. It closes loopholes by requiring all fees (including late fees, insurance, and ancillary charges) to be included in the rate calculation, replacing the current patchwork of state laws. The cap applies broadly, with limited exceptions for small application fees under specific conditions. This would prevent lenders from charging rates like 400% for payday loans or 17,000% for overdrafts, while requiring clear disclosure of the total fee-and-interest rate.