Trump Administration Wants to Remove Interest Rate Limits and Sacrifice the Consumer
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New rule removes interest rate limits on subprime and payday lenders

The proposed rule provides that lenders may charge whatever interest they want (currently rates are 300% and up).
The Trump administration’s proposal would allow payday lenders to make loans in every state without regard to state usury laws (or state licensing requirements and thus enforcement of other state consumer protection laws)…just as long as those lenders partner with a bank.
The author doubts there is legal authority for this proposed rule, but these payday lenders and others will get away with ignoring state law and other consumer protections until a court orders them to stop abusing the consumer. How many years will that take? How many vulnerable consumers’ will sacrifice their financial futures while waiting for the courts to act?
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