The payday lending industry might be entirely destroyed while the credit card industry would be significantly altered by a 15 percent rate cap.

The payday lending industry might be entirely destroyed while the credit card industry would be significantly altered by a 15 percent rate cap.

The master plan would ban loans that are payday

“Payday” loans are basically short-term loans (the theory is you’re fronted a small amount of money for per week or two until the next paycheck clears), which carry rates of interest that sound reasonable into the short-term context — 10 % over a couple of weeks, state, plus some costs. However in annualized terms, these loans carry a typical price of 391 %, as well as in some instances soar far greater than that.

This industry includes a bad reputation among avid customers of progressive media — mom Jones’s Hannah Levintova characterized the avoid Loan Sharks Act as being a crackdown on “predatory interest prices,” while Sarah Jones at brand New York mag stated Sanders and Ocasio-Cortez had been teaming up “against organizations that prey in the bad.”

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