Number
190326
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. JOHNSON
Title
Substitute resolution supporting U.S. Senate Bill 1389, known as the Loan Shark Prevention Act, in the 116th Congress (2019-2020).
Analysis
This resolution expresses the City’s support of U.S. Senate Bill 1389, known as the Loan Shark Prevention Act, introduced in the 116th Congress (2019-2020) by Sen. Bernie Sanders (I-VT), and for the companion House legislation expected to be introduced by Rep. Alexandria Ocasio-Cortez, (D-NY), Senate Bill 1389 proposes establishment of a maximum national usury rate of 15% on credit cards and other consumer loans.
Body
Whereas, Interest rates for unpaid balances on bank-type credit cards can be as high as 18% to 25%, and are often even higher for retail store credit cards; and
Whereas, High interest rate charges on credit cards shamelessly enrich financial institutions issuing these cards by far exceeding the costs incurred to extend this credit to customers, and unfairly exploits cardholders; and
Whereas, Interest and fees charged on payday-type loans, estimated by the Pew Research Center at 391%, can trap borrowers in an endless cycle of ever-increasing, impoverishing debt, unraveling the often threadbare fabric of the economic lives of those most at risk of financial ruin; and
Whereas, U.S. Senate Bill 1389, known as the Loan Shark Prevention Act, in the 116th Congress (2019-2020) was introduced by Sen. Bernie Sanders (I-VT), and it is expected companion legislation will be introduced in the U.S. House by Rep. Alexandria Ocasio-Cortez (D-NY) in the near future; and
Whereas, The Loan Shark Prevention Act caps interest on credit cards and other consumer loans at 15%, providing relief to credit cardholders and payday borrowers from exploitive and usurious interest and fee charges; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the City of Milwaukee supports U.S. Senate Bill 1389, known as th...
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