Predatory lenders want to veto limits on triple digit interest rates

 

Source: Maya Dukmasova, Chicago Reader

Among the flurry of bills passed in Springfield,IL. was the Predatory Loan Prevention Act, a measure that would cap interest rates for consumer loans under $40,000—such as payday loans, installment loans, and auto title loans—at 36 percent. These types of loans often trap consumers in cycles of debt, exacerbate bad credit, lead to bankruptcy, and deepen the racial wealth gap. Some 40 percent of borrowers ultimately default on repaying such loans.

Nearly 60 percent of the consumers who turn to these loans make less than $30,000.

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