Federal bill would cap loan interest for customers

Wisconsin Republican Grothman joins Democrats in sponsoring legislation to produce borrowers from ‘debt trap’

Wisconsin Congressman Glenn Grothman (R- Glenbeulah ) introduced bipartisan legislation this week along side a few modern co-sponsors that aimed at protecting customers from predatory lenders.

“Just on its face, where you’re getting interest levels up over 300%, it is immoral,” Grothman said in a telephone press meeting on Tuesday to mark the development of the bill. Citing a report utilized in planning for the bill, he included, among “anybody age 22 to 53, 13% regarding the public that is american removed a quick payday loan within the last few 2 yrs. And that’s simply appalling.”

The bill, The Veterans and Consumers Fair Credit Act, co-sponsored by Rep. Jesús “Chuy” García (D-Ill.) in the home and Sens. Jeff Merkley (D-Ore.), Jack Reed (D-R.I.), Sherrod Brown (D-Ohio) and Chris Van Hollen (D-Md.), would cap interest levels on consumer loans at 36% APR.

“An rate of interest limit could be the easiest, many effective method to stop these financial obligation trap loans,” Peter Skopec, director regarding the Wisconsin Public Interest Research Group (WISPIRG), stated in a statement Tuesday praising Grothman additionally the other lawmakers behind the bill.