Posted on 05/15/2019 2:39:07 PM PDT by Kaslin
It shouldn’t be a surprise to anyone that the infamous socialists Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Bernie Sanders, I-Vt., unveiled a new policy that’s aimed at targeting Wall Street. However, the only thing their deceptively titled Loan Shark Prevention Act will do is hurt the pocketbooks of common Americans.
The Act would cap all interest rates on consumer loans at 15 percent, effectively eliminating credit line options for millions of Americans.
Credit lenders often times extend credit with higher interest rates as a precaution if the potential borrower has bad credit as a way to mitigate risk. For example, an auto loan lender can take back your car if you default on the loan. But for credit lenders, there is no guarantee they will get their money back. So lenders can charge higher interest rates to compensate for that risk that the borrow obliges to. If borrowers can show the lender that they can make payments on time and that they are becoming less risky, the lender can reduce the interest rate.
Putting a cap on loans will only hurt Americans by making it too costly for credit lenders to risk lending potential borrowers credit. Thus, pushing borrowers into the hands of dangerous and illegal loan sharks. Exactly what the Loan Shark Prevention Act is aimed at preventing.
(Excerpt) Read more at foxnews.com ...
AOC = a-hole on crack
AOC is infantile and Bernie the Bum is senile.
“The Act would cap all interest rates on consumer loans at 15 percent”
Idiots. No one with a credit score of less then 750 (excellent) would get credit. It would cripple the economy.
What Fool would ever think that they care about everyday americans?
They make no qualms about the fact that they dont.
Not to mention that it will make it much harder for people to get loans and credit cards.
Cow farts Cortez and crazy Bernie don’t have 10 functioning brain cells between them...
Shut up and go away?
So people who previously would have gotten a credit card with 22% interest will now get no credit card at all.
Bad credit = No card
Got a prison record, we don’t care.
Got no job, we don’t care.
Don’t expect to pay us, THAT’S when we care!
If Ocasio-Cortez, Sanders really cared about everyday Americans they would do THIS
(CNN)Physician-assisted suicide is legal in seven US states and the District of Columbia. It is an option given to individuals by law in the District of Columbia, Hawaii, Oregon, Vermont and Washington. It is an option given to individuals in Montana via court decision.
https://www.cnn.com/2014/11/26/us/physician-assisted-suicide-fast-facts/index.html
1-800-I GIVE UP
If Ocasio-Cortez, Sanders really cared about everyday Americans they would do THIS.
RESIGN, GO HOME, SHUT YOUR TRAP!
Because that means she would have taken lots of economics classes to graduate with such a degree.
Any economist but a Karl Marx type would teach that capping prices artificially by the government on any product or commodity, will lead to a shortage or an elimination of that product or service from the market.
If the price is held down, the supply will dry up.
Capping interest rates on all loans at 15% means that many loans that are available now, will not be available under the interest cap mandate.
democRATic Socialists: We'll cap interest rates so people don't have to pay so much to the bad banks.
Banks and other lenders: We have money to lend but not at a maximum rate of 15%.
Consumers: Sorry. Out of luck suckers.
Cap @ 15%??
How does that NOT conflict w/ the Contracts Clause (along w/ every OTHER non-A1S8, anti-Constitutional edict, rule, reg, ‘law’+ in the same arena)??
Whom am I kidding, not even the (R)N(C) would dare to suggest it’s not a place for Fedzilla to tread...
Summary:
How a 1978 court case changed the credit card industry and put cards in everyone’s pockets, but erased state laws that limit interest rates.
"....For consumers across the country, the impact was a dramatic increase in the availability of credit cards. According to the American Bankers Association, 38 percent of American households had at least one credit card in 1977, the year before the Marquette ruling. By 1989, the percentage of families with at least one credit card was 56 percent. Today, it’s about 75 percent.
“Back in the day, it was traveling businessmen and wealthy folks who got credit,” says Peter Garuccio, spokesman for the ABA.
The increased availability came at a price. It’s no coincidence that South Dakota is the home state for subprime card issuer First Premier Bank, which gained notoriety for offering a card with an interest rate of 79.9 percent...
"..The Marquette ruling also set the stage for another landmark Supreme Court decision regarding the credit card industry, Smiley vs. Citibank. In that case, a California woman, Barbara Smiley, had filed a class action lawsuit against Citibank’s South Dakota-based credit card division, claiming that the $15 late fee she was charged on her credit card bill violated California state law. Citibank responded that the late fee was, in effect, interest and was covered under the National Bank Act. The Supreme Court agreed; the result was an increase of late fees and other fees from $10 or $15 to the $39 fee that credit card customers may see today...."
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.