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Is there a law that limits credit card interest rates for servicemembers?

There are federal laws that set rate caps for service members, but no generally applicable federal law that limits the interest rate that a credit card company can charge. In most cases, the law of the state where the credit 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 caps the amount of interest that active duty servicemembers and covered dependents can be charged for consumer credit, in most cases, at 36%. Creditors generally needed to comply with a rule implementing the Act starting on October 3, 2016. Credit card issuers had a later compliance date of October 3, 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 credit card balances that were incurred prior to active duty, called pre-service debt. Read more about the SCRA protections for credit cards and how you can request them