Dont look at the sponsors of the bill "loan shark prevention act"

#1

are you for or against capping the loan rate to 15% (credit cards, payday loans etc)?

Allan

#2

Here is the link sorry

this is a bipartisan issue.

I am sure we all can agree,

Allan

#3

I hope they are successful. Usury should be outlawed.

I also thought it was funny that people were calling this “socialist” on Facebook when it’s actually biblical.

#4

I think it will hurt people. Cap at 15% interest on everything. Guess what, you just guaranteed that interest rates for everyone will be 15% regardless of credit history. And if you’ve got bad credit history, instead of a high rate to cover potential loses, those people will be denied credit.

#5

Why would that be?

#6

I agree not sure this is best approach.

But these crazy 300% APR loans that end up in a vicious cycle should be made illegal.

#7

You still have a pre paid credit card with 15% interest to alleviate that concern.

Allan

#8

Those are already illegal in the progressive states.

Allan

#9

I’d like to see the data before making a decision on this. Have 32% loans is insanely high. However I want to know what the default rate is at certain percentages.

They would have to justify, with data, that this is the only way to cover the risk.

In my mind if you aren’t credit worthy, you should be denied credit… instead of dealing with 30% rates.

#10

I am not so sure 15% is a magic number.

I am sure that this is a good issue for middle class consumers.

Finally a productive track…let’s see where it goes. Don’t be surprised if Trump gets on board with a version of this.

#11

Yeah but Trump admin wa trying to undo the ban against the predatory lending.

#12

Not sure if he will… he essentially gutted The CFPB. That tells me he doesn’t really care about issues like this.

#13

If that’s the max they can charge, and the article says the average is 21% on credit cards, what do you think is going to happen to make up the difference between and average of 21% and 15%. Look for the lower rate payers to get hit because of it.

You don’t think credit card companies are just going to say “oh well, we’ll just bump all the high cards down to 15% and eat the loss” do you?

#14

You do know how a pre-paid card works right? How does the consumer get charged 15% when they can only spend as much as they have loaded on the card?

#15

Someone with a good credit history will find low rate loans if they need them. Someone with bad credit history should not have access to credit. It will only entice predators to loan to these people and screw them over in the long run.

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#16

You know who one of the main target for predatory loans are? Military families.

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#17

why would everyone rate magically jump to 15%.

#18

I have heard horror stories from my brother in the Navy. Luckily for him, we have been in constant contact about his finances and he still has no debt.

#19

@IBC

He is another one :joy:.

This will be the talking point until Trump likes it

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#20

How was CFPB “gutted”?

Do you mean the new boss rolling regulation back to what the statute that formed it said it could do? Is that “gutting” it?

(If that’s not it, link to how it’s been “gutted” please and thank you)