Bernie Sanders and Alexandria Ocasio-Cortez are introducing a radical plan to cap the credit card interest rate at 15%

Screenshot via CBS

Sen. Bernie Sanders of Vermont and Rep. Alexandria Ocasio-Cortez on Thursday unveiled new legislation on Thursday intended to "take on Wall Street greed."

• Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez unveiled ambitious new legislation on Thursday that would impose a federal cap of 15% on credit card interest rates.
• The bill would also allow states to impose interest rates lower than 15%.
• It's a bold plan at a time of record-high levels of credit card debt and interest rates.
• "I am sure it will be criticized," Sanders said of the legislation in an interview with the Washington Post. "I have a radical idea, maybe Congress should stand up for ordinary people."
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Sen. Bernie Sanders of Vermont and Rep. Alexandria Ocasio-Cortez of New York on Thursday unveiled new legislation on Thursday intended to "take on Wall Street greed" by capping credit card interest rates at 15%

Under the "Loan Shark Prevention Act" the annual percentage rate applicable to any extension of credit cannot surpass 15% on "unpaid balances, inclusive of all finance charges" or "the maximum rate permitted by the laws of the State in which the consumer resides."

In short, the bill would impose a 15% cap on credit card interest rates at the federal level and allow states to establish lower interest rates.

It's a bold plan at a time of record high levels of credit card debt and interest rates.

"I am sure it will be criticized," Sanders said of the legislation in an interview with The Washington Post. "I have a radical idea, maybe Congress should stand up for ordinary people."

"Wall Street today makes tens of billions from people at outrageous interest rates," Sanders added.

The median credit card interest rate was 21.36% as of last week, compared to 12.62% a decade ago,according to Creditcards.com. Meanwhile, Americans are collectively over $1 trillion in credit card debt, according to the Federal Reserve.