Interest Rate Reduction Act

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Congressional Research Service

Official summary

Version 00 · Introduced in Senate · Mar 12, 2009

Interest Rate Reduction Act - Amends the Truth in Lending Act to prohibit the annual percentage rate of interest (APR) applicable to any extension of credit to a consumer from exceeding 15% on unpaid balances, inclusive of all finance charges.

Authorizes the Board of Governors of the Federal Reserve System to establish an APR ceiling exceeding the 15% annual rate for periods not to exceed 18 months, upon a determination that: (1) money market interest rates have risen over the preceding six-month period; and (2) prevailing interest rate levels threaten the safety and soundness of individual lenders, as evidenced by adverse trends in liquidity, capital, earnings, and growth.

Declares the interest rate limitation inapplicable to an extension of credit by an insured credit union.

Subjects a creditor who violates this Act to a civil penalty.

Read the summary on Congress.gov

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People & committees

Who introduced it

Sen. Sanders, Bernard [I-VT] · I–VT

Committees

Banking, Housing, and Urban Affairs Committee

7 cosponsorship records, including any withdrawals

Legislative record

Actions

A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.

Mar 12, 2009
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Mar 12, 2009
Sponsor introductory remarks on measure. (CR S3076-3077)
Mar 12, 2009
Introduced in Senate

Primary sources

Bill text & related measures

Text links open the official source. We currently store references to these documents.

Introduced in Senate · Mar 12, 2009 Formatted Text PDF Formatted XML

Related bills identified by Congress.gov

HR 1640 · Interest Rate Reduction Act

Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.

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Objective

Analyze S.582 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.

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Discuss S.582, 111th Congress: Interest Rate Reduction Act

Official record: https://www.congress.gov/bill/111th-congress/senate-bill/582

Text version to examine: Introduced in Senate · 2009-03-12.

Official full text: https://www.congress.gov/111/bills/s582/BILLS-111s582is.htm

Imported record last updated by the source: 2025-12-05T19:34:44Z. Verify current status and distinguish any later version from the version above.

Read the official text before answering. If you cannot access it, say so and ask me to provide it; do not assume a link means you have read the document. Distinguish proposals from enacted law, cite sources, and separate facts, interpretation, and uncertain predictions. Include counterarguments even when using a particular perspective.

Analyze S.582 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.

Fairness and public impact

Progressive lens

Examine S.582 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.

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Discuss S.582, 111th Congress: Interest Rate Reduction Act

Official record: https://www.congress.gov/bill/111th-congress/senate-bill/582

Text version to examine: Introduced in Senate · 2009-03-12.

Official full text: https://www.congress.gov/111/bills/s582/BILLS-111s582is.htm

Imported record last updated by the source: 2025-12-05T19:34:44Z. Verify current status and distinguish any later version from the version above.

Read the official text before answering. If you cannot access it, say so and ask me to provide it; do not assume a link means you have read the document. Distinguish proposals from enacted law, cite sources, and separate facts, interpretation, and uncertain predictions. Include counterarguments even when using a particular perspective.

Examine S.582 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.

Institutions and government scope

Conservative lens

Examine S.582 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.

View full prompt & sources

Discuss S.582, 111th Congress: Interest Rate Reduction Act

Official record: https://www.congress.gov/bill/111th-congress/senate-bill/582

Text version to examine: Introduced in Senate · 2009-03-12.

Official full text: https://www.congress.gov/111/bills/s582/BILLS-111s582is.htm

Imported record last updated by the source: 2025-12-05T19:34:44Z. Verify current status and distinguish any later version from the version above.

Read the official text before answering. If you cannot access it, say so and ask me to provide it; do not assume a link means you have read the document. Distinguish proposals from enacted law, cite sources, and separate facts, interpretation, and uncertain predictions. Include counterarguments even when using a particular perspective.

Examine S.582 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.

Individual rights and government power

Liberty lens

Examine S.582 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.

View full prompt & sources

Discuss S.582, 111th Congress: Interest Rate Reduction Act

Official record: https://www.congress.gov/bill/111th-congress/senate-bill/582

Text version to examine: Introduced in Senate · 2009-03-12.

Official full text: https://www.congress.gov/111/bills/s582/BILLS-111s582is.htm

Imported record last updated by the source: 2025-12-05T19:34:44Z. Verify current status and distinguish any later version from the version above.

Read the official text before answering. If you cannot access it, say so and ask me to provide it; do not assume a link means you have read the document. Distinguish proposals from enacted law, cite sources, and separate facts, interpretation, and uncertain predictions. Include counterarguments even when using a particular perspective.

Examine S.582 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.