Over the past few years, numerous states have imposed interest rate caps on consumer credit. In recent blog posts, we discussed the efforts of both Michigan and New Mexico to impose a 36% annual interest rate cap. Last year, Congress took up the discussion of a national 36% annual interest rate cap.… Continue Reading
Proponents of the Payday Loan Interest Rate Cap ballot initiative in Michigan met the June 1, 2022 deadline to appear on the November 2022 ballot in the state. If not picked up by the state legislature this summer, the proposal would ask voters to approve a state statute capping payday loan interest rates, that can currently reach over 370% APR, at no more than 36% APR.… Continue Reading
A group of Democratic House members, joined by a Republican House member, has reintroduced a bill (H.R. 5974) that would make consumer credit extended to any consumer subject to the Military Lending Act’s “all-in” 36% rate cap.
The bill provides that 10 U.S.C. Sec. 987(b) applies “to a creditor who extends consumer credit to a consumer to the same extent as such section applies to a creditor who extends credit to a covered member or a dependent of a covered member.”… Continue Reading
On Thursday, July 29, the Senate Banking Committee will hold a hearing entitled, “Protecting Americans from Debt Traps by Extending the Military’s 36% Interest Rate Cap to Everyone.”
The scheduled witnesses for the first panel are Republican Congressman Glenn Grothman and Democratic Congressman Jesús G. “Chuy” García. The scheduled witness for the second panel are:
- Holly Petraeus, Former Assistant Director for Servicemember Affairs, CFPB
- Ashley Harrington, Federal Advocacy Director and Senior Counsel, Center for Responsible Lending
- Richard Williams, President/CEO, Essential Federal Credit Union
- Bill Himpler, President & CEO, American Financial Services Association
- Professor Thomas W.
According to an NPR report published last week, a group of lawmakers consisting of three Democratic Senators, one Democratic House member, and one Republican House member is expected to introduce House and Senate versions of the “Veterans and Consumers Fair Credit Act,” a bill that would effectively establish a 36% rate cap for consumer loans. … Continue Reading
As discussed in an earlier post, on November 6, 2018, Colorado’s voters passed Proposition 111, seeking to limit interest rates and fees charged on payday loans in Colorado to an annualized percentage rate of thirty-six percent. Effective February 1, 2019, the proposition amends Colorado’s Deferred Deposit Loan Act (C.R.S.… Continue Reading