Join our network of non-profits, companies and individuals who believe social change can happen through design.Become A Member
Member since June 10, 2011
Clearly there was a bill introduced in March of this year in the House of Representatives called "Protecting Consumers from Unreasonable Credit Rates Act of 2009." This bill will cap interest levels (including credit-based card rates) at 36 percent. Thirty Six Percent! That may be absolutely outrageous. Why would such a bill ever be introduced?
Upon reading the balance, it became obvious that Americans have been taken up to the cleaners each and every day which bill was created in order to help. Here's why niche gave why that it was introduced: "Cash-strapped consumers pay normally 400 percent annual interest for 300 loan, 300 percent annual interest for car title loans, as much as 3,500 percent for bank overdraft loans, 50 to 500 percent annual interest for 300 payday loan secured by expected tax refunds, and better than Half annual percentage interest for credit cards that charge junk fees."
Seeing that, the 36 percent didn't seem so bad. Still, not surprising we now have this kind of challenge with unsecured debt in this country. You can view how difficult it would be to have you ever gotten debt free with such outrageous fees being tacked to existing debt. Especially internet site . fees are added during a period if your borrowers are receiving problems initially. Not surprising many people are looking towards debt help.
The check started to state: "A national maximum monthly interest including all styles of fees and closes all loopholes is critical to lose such predatory lending."
We would definitely agree predatory lending no longer has enough control in this particular country and another has to be done. However, seems like a 36 percent cap will just result in the credit card providers for making that their standard rate. Good example; A buddy of mine was just given discover that her plastic card mortgage rates were being raised to 31 percent. Wow! Imagine if you've got $10,000 on the plastic card charging 31 percent interest per annum. The mathematics has me overwhelmed along with today's economic woes, frightening. How will you are you getting not in debt? Into your market already stated was introduced but hasn't yet passed. The charge card Act has passed, and starting in February 2010 will freeze plastic card home interest rates for five-years. No surprise my friend's monthly interest went up. Credit card issuers don't want to get caught with low interest.