Bernie Sanders and AOC’s want to crack straight down on high-interest loans, explained

Economical (but scarcer) bank cards plus the end of payday advances.

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Rep. Alexandria Ocasio-Cortez (D-NY) talks within a rally at Howard University might 13, 2019 in Washington, DC. Alex Wong/Getty Images

Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) have a proposal that is deceptively simple make banking better: cap rates of interest on customer loans at 15 per cent each year.

The avoid Loan Sharks Act is a sweeping policy proposition that could impact not only the bank card industry — one of many goals of instant protection of this bill — but additionally other sectors associated with the economic solutions industry. The program would practically eradicate alleged loans that are“payday and a variety of other high-interest items that are utilized mostly by low-income borrowers without good credit histories.

This notion polls very well. With regards to had been final pending in Congress in 1991, it passed the Senate by an overwhelming 71-14 margin. Continue reading Bernie Sanders and AOC’s want to crack straight down on high-interest loans, explained