Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezSanders, Ocasio-Cortez to unveil legislation targeting credit card, banking industries The Memo: Trump taxes put new spotlight on business record On The Money: White House files notice of China tariff hikes | Dems cite NYT report in push for Trump tax returns | Trump hits Iran with new sanctions | Trump praises GM for selling shuttered Ohio factory | Ex-Im Bank back at full strength MORE‘s (D-N.Y.) team said the Loan Shark Prevention Act she unveiled Thursday alongside Sen. Bernie SandersBernard (Bernie) SandersSanders, Ocasio-Cortez to unveil legislation targeting credit card, banking industries Trump predicts Dem investigation will drive him to 2020 win Trump hits O’Rourke: ‘Boy has he fallen like a rock’ MORE (I-Vt.) would “destroy” the payday loan industry.
“The bill will officially cap all interest rates on consumer loans at 15% — lowering the credit card rates of millions of Americans, and functionally destroying the predatory ‘payday’ loan industry,” her team said in an email to supporters.
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“Predatory lending and our credit rating system targets lower income Americans and people who are living paycheck to paycheck with manipulative practices and hidden fees — trapping millions in a cycle of systemic poverty as their hard-earned money is funneled into exorbitant bonuses for Wall Street executives,” the email also said.
The lawmakers on Thursday announced that they would introduce the legislation in a livestream video. They also tweeted about the measure.
In Texas, the average annual interest rate on a payday loan is 661%.
In Vermont, the payday loan industry doesn’t exist, because interest rates on small dollar loans are capped at 18%.
We must cap interest rates on consumer loans and credit cards at 15% nationwide.
— Bernie Sanders (@BernieSanders) May 9, 2019
There is no reason a person should pay more than 15% interest in the United States.
It’s common sense – in fact, we had these Usury laws until the 70s.
(Max interest rates are record-high for ppl with excellent credit, too.)
It’s a debt trap for working people + it has to end. https://t.co/tYf4J892KQ
— Alexandria Ocasio-Cortez (@AOC) May 9, 2019
A payday loan is a short-term loan that is borrowed at a higher interest rate. Sanders is among more than 20 Democrats running for president in 2020.
Ocasio-Cortez is a member of the House Financial Services Committee. Last month she grilled leaders of major banks over whether more people should have gone to prison for their roles in the 2007 financial crisis.