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S. 3287, The Protecting Consumers from Unreasonable Credit Rates Act of 2008
- This item is from the 110th Congress (2007-2008) and is no longer current. Comments, voting, and wiki editing have been disabled, and the cost/savings estimate has been frozen.
Version saved on September 11, 2008, 10:45:17, by webmaster:
S. 3287 would amend the Truth in Lending Act to establish a national usury rate for consumer credit transactions.
Detailed Summary
Protecting Consumers from Unreasonable Credit Rates Act of 2008 - Amends the Truth in Lending Act to prohibit a creditor from making an extension of credit to a consumer with respect to which the annual percentage credit rate (APR) exceeds 36%.
Includes within such APR all charges payable directly or indirectly incident to, ancillary to, or as a condition of the extension of credit.
States that any payment in violation of this Act is null, void, and unenforceable.
Prescribes civil and criminal penalties for violations of this Act. Empowers states' Attorneys General to enforce it.
Status of the Legislation
Latest Major Action: 7/17/2008: Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Points in Favor
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Points Against
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Visitor Comments
Griggs
August 12, 2008, 6:27pm (report abuse)This bill would put many 1000's of small loan lenders out of business. These local businesses hire local personnel who would be let go. They would have to break or default on the leases for their store fronts, negatively impacting property owners. State goverments would no longer collect annual licensing fees from these businesses and would need to significantly cut back on the auditing staffs who review these businesses. Lastly, many customers would no long have an outlet for small loans, since banks would not deal in such matters because the few pennies they would make under this law for small short term loans would not justify the making of these transactions.
mark
December 17, 2008, 8:53am (report abuse)Senator Dick Durbin (D- Illinois) has introduced legislation the (Protecting Consumers from Unreasonable Credit Rates Act) that he intends on tacking onto an economic stimulus package. The bill will create a new federal definition of APR, create a new federal agency to oversee all forms of consumer credit and insurance and, cap interest rates taking all rate setting authority away from individual states. His legislation will put thousands of small loan companies out of business, and eliminate access to consumer credit for millions of households all at a time when access to credit is already at an all time low.
jud
December 17, 2008, 10:14am (report abuse)Rate caps, like all price controls tried in the past, have but one result - the elimination of access to the product services in the legitimate marketplace. Rate caps (price controls) always hurt consumers. This bill would hurt millions of consumers and have a horribly negative impact on the overall economy.