Vermont senator Bernie Sanders and U.S. Rep. Alexandria Ocasio-Cortez introduced legislation this May 2019 that would cap both rates at 15%. Payday loans are small-dollar advances designed to provide emergency funds, and typically require payment in full on the borrower’s next payday. Some say that these types of cash advances take unfair advantage of those in financial distress, due to the high interest rates.
Sander Tweeted “It’s time to end exploitative lending that keeps Americans trapped in debt. We will cap interest rates on consumer loans and credit cards at 15%.”
This is another reason why collateral lending at Gems N’ Loans is a great alternative with interests rates as low as 2%.