High-cost loans are marketed as easy paths to earning extra cash, but the reality is far less enticing. They’re long-term debt traps, often carrying triple-digit interest rates that can cost more than two or three times the original loan amount.
On July 28, the Veterans and Consumers Fair Credit Act (VCFCA) was proposed in the Senate Committee on Banking, Housing, and Urban Affairs. If passed, the bill would cap interest rates on loans at 36 percent and will go a long way toward protecting consumers, especially veterans, who are targeted by predatory lenders.
“We commend Sens. Reed and Merkley, Chairman Brown, and the other bill co-sponsors for introducing the Veterans and Consumers Fair Credit Act to end the predatory debt trap in America,” said Mike Litt, U.S. PIRG’s consumer campaign director.
“Rate caps to stop usury are wildly popular across the political spectrum and have passed with flying colors in blue and red states alike. Now, it’s time to protect consumers in all states. “
Content Creator, Editorial & Creative Team, The Public Interest Network
Aaron writes and designs materials with the Creative Team for The Public Interest Network for U.S. PIRG. Aaron lives in Arlington, Massachusetts, and spends his spare time playing drums and going for long walks.