The master plan would ban payday advances
вЂњPaydayвЂќ loans are basically short-term loans (the theory is youвЂ™re fronted a small amount of cash for a week or two until the next paycheck clears), which carry rates of interest that sound reasonable within the context that is short-term ten percent over fourteen days, state, plus some costs. However in annualized terms, these loans carry a rate that is average of %, plus in some instances soar far greater than that.
The payday lending industry might be entirely destroyed while the credit card industry would be significantly altered by a 15 percent rate cap.
This industry possesses bad reputation among avid customers of progressive media вЂ” mom JonesвЂ™s Hannah Levintova characterized the Stop Loan Sharks Act as a crackdown on вЂњpredatory interest prices,вЂќ while Sarah Jones at brand brand New York mag stated Sanders and Ocasio-Cortez had been teaming up вЂњagainst businesses that prey from the poor.вЂќ