The Loan Shark Prevention Act, sponsored by Rep. Ocasio-Cortez and Sen. Bernie Sanders, would cap interest rates at 15% for all consumer loans. No more outrageous credit card rates. No more 400% interest rates on payday loans. One less way for Wall Street to get rich by exploiting struggling communities.1
If Wall Street banksters want a loan, they can borrow from the Federal Reserve and pay only 2.5% interest. People without access to loans are stuck with double-digit interest rates on credit cards. And for the millions of “unbanked” Americans, who don’t live near a bank or whose financial situation prevents them from opening a bank account, payday lenders can be the only option. These payday loans come with sky-high interest rates and misleading terms and conditions that trap desperate people into a cycle of debt.2
A 1978 Supreme Court decision effectively legalized loan sharks by allowing credit card companies to base themselves in states like South Dakota and Delaware with no interest rate caps. Rep. Ocasio-Cortez and Sen. Sanders' new bill would undo the damage by instituting a national 15% cap on all consumer loans. Both Rep. Ocasio-Cortez and Sen. Sanders – along with numerous other progressive champions like Sen. Elizabeth Warren – also propose creating a postal banking system, like the one that existed from 1917 to 1967, in order to make sure people can still access credit at lower interest rates.3
The bill is only two pages long. It is simple, clear – and a brutal contrast with Donald Trump, who is sabotaging the Consumer Financial Protection Agency and rolled back strict rules on payday lenders.4
The proposal has right-wing media and Wall Street insiders up in arms, and the payday loan industry is mounting an offensive. But a recent poll found that more than 70% of Americans support the bill – including majorities of Republicans.5 We need to force Trump Republicans and corporate Democrats to explain why they oppose something so popular.
Stand with Rep. Ocasio-Cortez: Pass the Loan Shark Prevention Act. Click below to sign the petition:
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References:
- David Dayen, "Alexandria Ocasio-Cortez and Bernie Sanders team up on bank legislation," The Intercept, May 9, 2019.
- Ibid.
- Ibid.
- Ibid.
- Eliza Relman and Walt Hickey, "The vast majority of Republicans support Alexandria Ocasio-Cortez and Bernie Sanders' plan to cap credit-card interest rates at 15%," Business Insider, May 15, 2019.
More Information:
Sanders And Ocasio-Cortez Offer REAL 'Financial Choice' With Their Loanshark Prevention Act - Forbes |
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