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We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.

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Is there a law that limits credit card interest rates?

Answer:

Generally, there is no federal law that limits the interest rate that a credit card company can charge. The law of the state where the card company has its headquarters generally determines the maximum interest rate the card issuer can charge.  

There are laws that limit the interest rate that you can be charged if you are an active duty servicemember (including those on active Guard or active Reserve duty) or a covered dependent. 

The Military Lending Act limits the amount that active duty servicemembers and covered dependents can be charged for consumer credit. Creditors needed to comply with a new rule implementing the Act starting on October 3rd, 2016, except for credit card accounts, which has a compliance date of October 3rd, 2017. Read more about the Military Lending Act.   

The Servicemembers Civil Relief Act (SCRA) limits the interest rate to 6% for active duty servicemembers for pre-service debt, that is, credit card balances that were incurred prior to active duty. Read more about the SCRA protections for credit cards and how you can request them. 


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The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.