MinnesotaCovered lenders would cap credit card interest at 10%
After specified changes in federal law, covered financial institutions and credit unions would have to keep credit card interest at or below a 10% annual rate.
What it does
Covered financial institutions and credit unions would face a 10% annual rate limit on credit card balances, but each limit depends on a specified change in federal law.
Argument forIf the federal law conditions are met, cardholders whose rates would otherwise exceed 10% could pay less interest on unpaid balances.
Argument againstA 10% cap could lead some covered card issuers to offer less credit to borrowers they consider riskier.
More detail
Covered financial institutions and credit unions would face a 10% annual rate limit on credit card balances. The provisions cover credit card loans from the financial institutions described in sections 1 and 3, and loans made by state and federal credit unions. The limits take effect only after the federal law change stated for the relevant institution occurs. The limits take effect only when federal law requires the relevant federally chartered institutions to follow state limits on finance charges; the commerce commissioner must notify the revisor when each stated change occurs.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 17Introduction and first reading, referred to Commerce Finance and PolicyIntroduced
Consumer Protection