Forum Post: What about supporting a cap on usury percentage rates say 7%.
Posted 12 years ago on Dec. 7, 2011, 7:59 p.m. EST by ClearView
(73)
This content is user submitted and not an official statement
One time during the first six months of a credit card plan, I was 16 days late and my rate went from 6% to 27.24%. I even got the card from my local bank who at the time would not consider giving me a small loan to get by lean times. Fast forward two years. Now that same local bank was glad to give me an unsecured loan at 14.25 percent, where I was asked if I wanted more $. No thank you at the same rate as the card mentioned above (after the penalty phase)
The question of usury may seem old fashioned and not relevant to 2011, but law makers at the state level have dealt with it for decades. It seems that it's usury for the fellow on the street corner to loan you $1000 at 50% interest (loan sharking) but not if your credit card company does the same. There's a reason for this.
Congress granted to "National Banks" the right to charge interest at the legal rate of the state where they, the bank, is located. That's why you send your payments to places like Delaware and South Dakota. They have either high legal limits, or none at all.
This can be changed. Just think, in places like WV where I live the credit cards banks could only charge 8%. At that rate I, and many others of us, could actually use credit cards and pay off the debt sometime before hell freezes over.
"But then," say the bankers, "poor credit risks wouldn't be able to get credit." Isn't that the point made about the mortgage mess; that poor credit risks were given loans that they couldn't pay for? What's better, giving someone without the means to pay back a super high interest loan the money, or maybe finding other ways (lay-a-way) for that person to purchase goods? Handing out high interest loans was what the usury laws were intended to stop.
More details at my blog: http://thereasonablecurmudgeon.blogspot.com/2011/08/this-might-work.html
A lot of people will say it is your fault for being charged that high rate, but their is a moral component here. I'm not an expert on economic history but many civilizations throughout time have struggled with usury.
The bible speaks to usury mainly implying that usury should not be used against the poor or family members. 15% of Americans live in poverty so it begs the question. Here are some passages from the bible:
" If you lend money to any of My people who are poor among you, you shall not be like a moneylender to him; you shall not charge him interest." (Exodus 22:25)
"If he has exacted usury Or taken increase -- Shall he then live? He shall not live! If he has done any of these abominations, He shall surely die; His blood shall be upon him." (Ezekiel 18:13)
There are a lot of improvements that need to be made. The list reforms people Americans want to see is long and varied depending on who you talk to. That said, I believe there is one reform that would provide the American people the best chances of seeing other meaningful reforms actually happen - that is REAL, loop-hope free CAMPAIGN FINANCE REFORM! I have seen others on this site calling this the "fulcrum" or pivotal issue. Right now the current legalized bribery, pay-to-play system of campaign donations and paid lobbyists has disenfranchised the American voter. Until this is fixed, any other reform the politicians may try to placate us with (be it a change to healthcare, clamping down predatory school loans, new financial regulations, etc.) will be about as effective as a farmer putting a new roof on his CHICKEN COOP, but still letting the FOX guard it.
We need to go back to the original political currency. Instead of the current system of who can collect the most money from corporations and special interests it should be who has the BEST IDEAS to EFFECTIVELY RUN THE COUNTRY (we don't need "Wealth Redistribution," what we need is "Political Influence Redistribution")!
For the sake our our children and future generations of Americans, we need to take back our democracy from the rich and powerful who are using their vast sums of money to "speak" as if they represent millions of Americans. This "Corporate Personhood" that has crept into our laws is allowing them to manipulating our policies in their favor at the expense of the average American (the recent "Citizens United" Supreme Court ruling is a miscarriage of justice and must be reversed. The $50 or $100 a normal American may give to a political campaign becomes meaningless when corporations or other special interests are handing our millions to buy political access to the decision making process.
For decades now the corporations and special interests have had our "representatives" bought and paid for (both on the right and the left). Concentrating our efforts on getting the money out of our politics is the best way we can create an environment in which further reforms can be realized. Until we end the current system of legalized bribery (campaign donations) and paid lobbying our politicians will continue to be the LAP DOGS of the corporations and special interests. What we need first and foremost is real, loop-hole free CAMPAIGN FINANCE REFORM!!!! If the corruption is not dealt with first, the chance of any other meaningful reforms becoming a reality is almost zero - the special interests will just use their money to buy votes and put forward bills that create loop-holes or otherwise twist the law in their favor. If we want our children to live in a country where there vote matters, we need to get the money out of our politics, otherwise they will increasingly become the 21st century version of the "landless peasant." Spread the word - End the LEGALIZED BRIBERY!!! CAMPAIGN FINANCE REFORM needs to be THE main goal of the protests!!!
At one point in American history, I believe it was FDR an Economic Bill of Rights. It's in that spirit I suggest this consideration. http://www.fdrheritage.org/bill_of_rights.htm
Yes, your credit card payment, but that is your problem. Not the worlds problem, not the reserve status of the US Dollars problem.
The problem was that interest rates courtesy of the FED-RES were too low for too long and money became worthless.
Cut up your credit cards and pay them off,otherwise your a fool.
I would love to get a secure loan at 4%, which is being offered to those that have assets. Unlike many with credit cards, I only got one to meet my financial responsibilities. Can't seem to catch up in this economy. I would love to cut them up asap, believe me. I am grateful to all of you that are daily keeping the action up and the conversation going. Thank you many times over.
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