S.500 - Protecting Consumers from Unreasonable Credit Rates Act of 2009

A bill to amend the Truth in Lending Act to establish a national usury rate for consumer credit transactions. view all titles (2)

All Bill Titles

  • Official: A bill to amend the Truth in Lending Act to establish a national usury rate for consumer credit transactions. as introduced.
  • Short: Protecting Consumers from Unreasonable Credit Rates Act of 2009 as introduced.

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  • Freedomofchoice 04/19/2009 2:02pm
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    + -2

    Where is Washingto D.C. going to stop? Don’t be fooled, this bill will shut down small finance companies that are willing to lend a little money to high risk clients that banks won’t touch. If this bill passes we are all one step closer to complete government rule. Last time I checked I was living in the USA! STOP telling me where I can and can’t borrow money! If I want a quick $200 and am willing to pay back $230, it is MY business!

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    idiotsn2009 04/22/2009 6:01pm

    I am unsure where you live freedomofchoice…but in states like oklahoma, you borrow $216 and payback $330. How do you like those apples? Instead of paying back $30 how about $114? Since we are dealing with credit challenged people who do not understand the importance of paying on time…lets add a $15 late fee if not paid by the 10th day. Over 6 months, an uneducated customer could pay $420 for that original $216. Now, don’t say they should be on time. We all know that, but I have worked in this business and I have seen it happen, more often than not. So who’s being helped more, the customer or the CEO? And if you feel that you are really backed into a corner…can you say it’s your decision to borrow at 100% interest or the company’s whose money you are borrowing? If you had a choice of low interest or hight interest which would you honestly choose?

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    any1wannabuymeadrink 04/23/2009 9:00am
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    + -1

    At a payday loan place for a 200$ loan is 230$ payback. It just depends on when you get paid every other week or once a month. I have worked at both payday loan company and a finance company. Finance companies are a high risk business, they have to make there money some how to compensate for all the charge offs that finance companies might have.

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    superjerk 07/18/2009 7:06am

    I do believe that in Oklahoma if you borrow $200 for 2 weeks, the payback on that is $230.

    Your argument is that the credit challenged people do not payback on time, so that justifies a 36% APR cap? So the payback on a $200 loan after 2 weeks should be $203.00? That would put these companies out of business.

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    idiotsn2009 04/22/2009 6:03pm

    The problem isn’t what we are discussing. The problem is the lack of credit education and responsible money handling in our schools. How to handle credit and pay your bills responsibly has been ignored for years. Most consumers who use these services have no clue that the loans are high interest. Some finally do the math, but others never get it. So, don’t blame the gov because of our ignorance to credit. If we don’t have enough money to make it from payday to payday..ask yourself why? How much is your car payment? Are you living above and beyond your means? Did you spend too much on an outfit? Yes, if this bill passes it will be devasting to the hundreds of thousands of people that use these services and to the many hard working Americans that have to “chase” the customer down sometimes to get them to pay. But, sometimes, just like in our personal lives, we have to take a step backwards before we can proceed forward.

  • any1wannabuymeadrink 04/21/2009 9:05am
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    + -1

    If this bill gets passed, it will shut down all the companies that will be affected by this bill that includes rent to own, small finance company, and pawnshops. There will be alot of people out of jobs and on unemployment, and with the current rate of the economy, it will make things worse than better. There are alot of people that also have less than perfect credit and if small finance companies are out of business and their refrigators or the car needs repairs, they arent going to be able to borrow any money.

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    idiotsn2009 04/22/2009 6:09pm

    I don’t want to hear less than perfect credit. I’ve worked in this line of work for 18 years. I see credit with charge offs from every loan company in town. All within different years. explain that. Joe Jones fell on hard time every year someone gave him a chance? No, its ignorance to understanding credit. walk in my shoes for 18 years and you will see what I am trying to get you to understand. It may not be your intent to walk into a finance company, get a loan, and never come back, but you would be amazed at how many people do that.

  • bullshit 04/21/2009 7:44pm

    This bill will promote people to seek other ways to get short term loans, and money. Stealing, drug dealing, anything you can think of to get money to hold you until you get to your next paycheck.

    Without pawn shops and small finance companies how will people get short term loans?? Loand sharks?? Ya IL for holding to the promotion of corruption and organized crime.

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    idiotsn2009 04/22/2009 6:06pm

    If your going to steal, you are a thief. You were a thief before this bill was proposed and you will continue to be one if it passes. Same with drug dealing. I have never stole and will never deal drugs. I will have to watch how I spend my money. Make sure my priorities are taken care of before i go binge shopping on unnecessary items, like Jordans for my son. I’ll have to live within my means and learn how to budget my money. It will not be easy, as we have years of behaving responsibly under our belts just to be rescued by a 200% interest loan. Looks like we are getting our pacifiers taken away and going to be forced to grow up and be responsible.

  • trenaty 04/24/2009 2:21pm

    i was unemployed for a 6 months in texas. lost my home and almost my car, but now i work for a payday loan center and understand both sides of this. most of the people that come to get a loan do pay it off over time. the longest i’ve seen so far is 2 months. and yes they do pay just the fees sometimes, but they came in because they needed help. and i work there because i need a job. to be honest i hate calling people 5 times a day. i wish we didn’t have to. but if i don’t then i’m not doing my job. and then i will lose my job. if this passes though i will lose my job.

  • leeloft 05/08/2009 7:54am

    I believe it is up to us as Americans to either accept of reject any private industry offers! It is not the place of goverment to control private business in any way. The goverment needs to stay out of our way!

  • Stupid 05/14/2009 5:52am

    As you can see by my username, I am stupid! I have been caught up in the “Payday Loan Cycle” for years and cannot get out of the hole. I feel that these “Payday Loan” places are taking advantage of people who have nowhere else to go. Their rates continue to go up! 300 plus percent interest in the state of Missouri. That is ludicris! If the government doesn’t step in and do something, where will it stop? They should have shut these places down a long time ago!

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    superjerk 07/18/2009 6:57am

    You got yourself in to the “Payday Loan Cycle” and now the government should come out and bail your ass out?

    300% APR is not ludicrous, you know why? Let’s do the math…

    You took out a loan of $100, at 300% APR at the end of a YEAR, you’d have to pay back $300. That’s $200 worth of interest, but that’s for a year… divide the $200 by 12 months and you’re at $16.60, divide that yet again by 4 you arrive at $4.16…That’s $4.16 interest on a loan of $100 for one week.

    Same scenario with 36% APR and your interest on a $100 loan for one week would be $0.75.

    How is a payday loan company or a pawnshop supposed to stay in business on $0.75 profit?

    Payday loans are there for you to use, but it’s on you to be responsible about it.

  • jinna 05/26/2009 12:07pm

    I understand both sides of this argument, but the truth is, it is not the government’s business! A comment was made earlier that we need to “grow up and be responsible.” I agree. But the government is acting like a parent trying to fight our battles for us. If we CHOOSE to pay interest and fees, etc., then we, as American people, must pay the consequences. Telling us that they’ll fix this problem for us is just stupid.

  • kevinmcc 05/29/2009 5:35am

    Cap interest at 36%? That is still ridiculous.

    Try a cap at 20%.

  • Comm_reply
    superjerk 07/18/2009 6:44am

    36% APR is ridiculous?

    You do realize that if you went to a payday loan company, and took out a 2 week payday loan for $100 that at the end of your two weeks your payback amount would be $101.50?

    That’s what a 36% APR would do.

    Now how do you justify paying $9/hour to a teller when that same teller can only process 8 loans an hour at best? That means in one hour that teller will make $12 for the company.

    This bill will destroy every single payday loan company, and pawnshop in the nation.

    Payday loan companies and pawnshops are vital for the people with poor credit, these people cannot get a traditional loan or a credit card.

    So I’ll agree, capping the interest at 36% is totally ridiculous.

  • nhsadika 02/23/2010 6:21am

    A country’s productivity gains are not more than 5% a year. When people are in debt, giving them a credit card to pay their debt does not help them. This is the way to kill a society – laden it with debt. SAVE OUR COUNTRY stop predatory lending.

    We are not helping people with the use usury (outrageous loans) it has for thousands of years been seen as a way to steal money from the poorest and most ignorant. THESE COMPANIES SHOULD BE OUT OF BUSINESS.

  • Comm_reply
    SavyVoter 02/24/2010 11:04am

    No consumer should consider borrowing $100-$1,000 to tide them over until payday at $15-$30 per $100—it is a recipe for disaster. Say someone borrows $1,000 for an unexpected bill. If they are only able to pay the fee each payday, after 5 paydates, they will have paid the principal amount, and STILL owe the original principal of $1,000! For someone paid twice a month, that is a total of $2,000 in ten weeks! If someone is living so tightly that they can not save $1,000, what chances are there that they will have enough disposable income to pay this thing back without racking up hundreds in fees? Not much, and this is exactly what make these bottom feeders a BILLION dollar industry! Let them come up with a sane, principled business model, or let them go under so that a reasonable alternative will arise to meet the needs of low-income individuals and families, one that preferably encourages saving over borrowing.

  • nhsadika 03/10/2010 4:58am

    SavyVoter – I agree 100% – a certain part of the financial services industry is a squid wrapping its face around those vulnerable.

    MOST, IF NOT ALL, the money made here is in keeping people paying fees and never actually paying principal back. The argument that these companies provide services for those in a tight-jam once in a year, is A JOKE. These companies bread and butter are people too IGNORANT about money management to know the trap they keep falling in.


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