Concerned that credit cards are trapping consumers “in a spiral of debt,” a Democratic U.S. lawmaker from New York Thursday introduced a bill that would cap credit card interest rates and all other loans at 15%.

“Many hardworking Americans are using credit cards to make ends meet in this recovering economy, but credit card companies are finding new ways to squeeze the middle class despite significant reforms in the last Congress,” Rep. Maurice Hinchey said in a statement.”We need to put an end to this legalized loan sharking.”

The lawmaker said high loan rates are forcing consumers into bankruptcies and a “reasonable cap” would promote a healthy lending system that would help Americans, rather than hurt them.

Consumers are facing greater fees and higher interest rates as banks seek to recoup revenues lost due to increased regulation. However, previous attempts to cap credit card rates have failed, and it could be even harder for such a plan to advance this year. With the House run by Republicans and the Senate run by Democrats, many analysts expect greater gridlock on Capitol Hill this year. Also, Congress passed a sweeping financial regulatory overhaul last year that could leave lawmakers less willing to sign off on another major financial regulation.

A spokesman for Hinchey said there haven’t been any concrete political changes that would boost the bill’s chances. But Hinchey has introduced similar legislation year after year, and “this is no different.”

Hinchey said his bill would expand rules that currently apply to credit unions to other financial firms. Under the legislative proposal, the Federal Reserve could only allow interest rates to exceed 15% under certain circumstances such as when the cap would unfairly hurt a financial firm or when money market interest rates have risen over the prior six months.

“I think it’s nuts,” said Richard Hunt of the Consumer Bankers Association. “Last time I checked we live in a free market enterprise.”

Hunt said the proposal is unlikely to become law.

“It’s not going anywhere,” he said.