(a) In general

Section 107 of the Truth in Lending Act (15 U.S.C. 1606) is amended by adding at the end the following:

(f)

(1)

The annual percentage rate applicable to an extension of credit obtained by use of a credit card may not exceed 10 percentage points, inclusive of all finance charges.

(2)

Any fees that are not considered finance charges under section 106(a) may not be used to evade the limitations of paragraph (1), and the total sum of such fees may not exceed the total amount of finance charges assessed.

(3)

The taking, receiving, reserving, or charging of a credit card annual percentage rate or fee greater than that permitted under this subsection, when knowingly done, shall be deemed a violation of this title, and a forfeiture of the entire interest which the note, bill, or other evidence of the obligation carries with it, or which has been agreed to be paid thereon.

(4)

If a credit card annual percentage rate or fee greater than that permitted under this subsection has been paid, the person by whom it has been paid, or the legal representative thereof, may, by bringing an action not later than 2 years after the date on which the usurious collection was last made, recover back from the lender in an action in the nature of an action of debt, the entire amount of interest, finance charges, or fees paid.

(5)

Any creditor who violates this subsection shall be subject to the provisions of section 130.

(g)

Nothing in this section may be construed to preempt any provision of State law that provides greater protection to consumers than is provided under this section.

(b) Technical and conforming amendment

Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended, in the matter preceding paragraph (1), by inserting section 107(f), before this chapter.

(c) Sunset