Democrats are Split on Interest Rate Cap Bill

There has long be rumors that there was a split amongst democrats over whether extending the 36 percent rate cap to all consumer loans was a good idea; many members voiced concerns that APR should not be used to evaluate all loans, especially those under a year; “APR I don’t think is the best way to evaluate the cost of short-term loans,” said Rep. Brad Sherman, D-Calif., to American Banker; the biggest concern is that the rate cap would eliminate loans to those who need them the most; there is also the issue of valid when made that states the interest rate of the loan where it is originated can be preserved when the loan is sold; the split amongst democrats has existed for quite some time but is now public as democrats try to push for the bill’s adoption. American Banker

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