No Loan Should Be Legal In The USA If Its Interest Rate Is Above

[ThomWV]

Bring back usury laws, limit the total interest that can be charged for loaned money. The highest interest rate allowed by law should be"

[jpgray]

1. What was the original impetus for the former 10% limit?

Why was it fixed there? Just curious.

[lurky]

2. Was there ever a federal usury law?

I thought it was enforced at the state level, which is why places like South Dakota and Delaware could repeal those laws to attract credit card cos.

[Tangerine LaBamba]

3. I believe it was always state

The Feds, though, did nothing when the states threw out their usury laws.

That's a huge one, but no one's talking about it.

We're doomed...........

[Cairycat]

4. I voted for 10% because

that's what Christians are supposed to tithe. If God gets 10 percent, that should be good enough for creditors, no?

[southerncrone]

7. Excellent poin since we MUST now cowtow to the Christian theology & claim to be a Christian nation!

:thumbsup:

[Sebastian Doyle]

15. But Christian theoology says you shouldn't charge interest at all.

Actually Judeo-Christian theology, since a lot of the scriptures saying so are in the old testament.

So anyone in the financial industry who claims to be a Jew or a Christian is disobeying God's own laws against usury, and they're gonna go straight to Hell :evilgrin:

Unfortunately, they're taking this country with them :evilfrown:

[southerncrone]

17. Yes, there was that little ditty about throwing the "money changers" out

of his Father's house, wasn't there....?

[Kurt_and_Hunter]

5. Your failure to specify a rate of inflation makes this a joke poll

[shraby]

6. It should be keyed to the interest rate that is

paid on savings accounts..no more than 3 percent above what a person can draw on their savings.

[SmokingJacket]

8. Exactly. The difference between what I earn on my CDs

and what I have to pay to borrow REALLY chaps my butt.

[mudesi]

9. I said no limit

If inflation is out of control, you need to have high interest rates.

[hack89]

10. The lower the limit, the fewer people that will get loans

and it impact the poor or those with poor credit ratings. If your intent is to protect these folks from themselves than I guess a limit is OK.

[ThomWV]

11. When I was a kid there were loan companies all over the place at 10%

Back when I was a kid in south Florida there were loan companies all over the place. They did a hijack job on the poor, just like the remaining ones do today - credit for everyone and the highest interest rate law provided for - which was 10% back then. They all charged it and lived with it. Shit, I walked into one at the age of 19 and borrowed the money to buy a second hand Ford with a $1.73 an hour job that I had held a grand total of 2 days. What is does is not deny loans to the poor, it cheapens the cost of loans to those who's credit is good.

[LBJDemocrat]

12. If you lower the interest rate limit, fewer loans will be given

Period.

Edit: And yes, I support that. Not everyone should be given credit. In fact, everyone should strive to avoid it except for necessities. Funding luxuries like TVs with credit cards is absurd. Can't afford a house? Then rent. Or, God willing, pressure the government to subsidize more housing.

[hack89]

13. Loan companies will not absorb excessive risk

risk of default is why some people pay higher interest rates than others. A limit assumes that loan companies will willingly assume that added risk - the more likely outcome is that they will not loan money to certain people.

[morgan2]

14. if ever there was a limit it would have to be linked to inflation

[jesus_of_suburbia]

16. I thought 10% before I even clicked on the topic and read the responses...

Looks like most of us feel that way.


Sounds like a fair rate for the business and the customer to me.