Wednesday, February 26, 2020
Miles from the Mainstream
D. R. ZUKERMAN, proprietor

Loan Shark Prevention Act

May 19, 2019 --

LPR has long been opposed to predatory free enterprise. One example is high interest rates on credit cards. Well, LPR has not been a fan of Sen. Bernie Sanders, nor of freshman Rep. Alexandria Ocasio-Cortez, but LPR supports their Loan Shark Prevention Act, which would set a cap of 15% on credit cards. President Trump, in his Inaugural Address noted, in part: "For too long, a small group in our nation's Capital has reapd the rewards of government while the people have borne the cost." That certainly seems the case with people who live paycheck to paycheck and find thy can only make partial payments on their credit cards, with the result that their payments balloon well above the purchase price of the item purchased with the credit card.

According to "The Week," the median interest rate on credit cards is 21.36 percent. Whatever happened to usury as a legal principle? In the wake of the trade dispute with China, which has resulted in the imposition of 25% tariffs on Chinese goods, critics of the president call this a tax on the American people. What are interest rates above 15% if not a tax, with the proceeds going to financial institutions, on people with modest -- or lower-- incomes who cannot afford to pay in full for credit card purchases.