Rep. Alexandria Ocasio-Cortez’s (D-N.Y.) team said the Loan Shark Prevention Act she unveiled Thursday alongside Sen. Bernie Sanders (I-Vt.) would “destroy” the payday loan industry.
“The bill will officially cap all interest rates on consumer loans at 15% — lowering the credit card rates of millions of Americans, and functionally destroying the predatory ‘payday’ loan industry,” her team said in an email to supporters.
{mosads} “Predatory lending and our credit rating system targets lower income Americans and people who are living paycheck to paycheck with manipulative practices and hidden fees — trapping millions in a cycle of systemic poverty as their hard-earned money is funneled into exorbitant bonuses for Wall Street executives,” the email also said.
The lawmakers on Thursday announced that they would introduce the legislation in a livestream video. They also tweeted about the measure.
A payday loan is a short-term loan that is borrowed at a higher interest rate. Sanders is among more than 20 Democrats running for president in 2020.
Ocasio-Cortez is a member of the House Financial Services Committee. Last month she grilled leaders of major banks over whether more people should have gone to prison for their roles in the 2007 financial crisis.