Democrats are pushing for a new round of legislation aimed at curbing the impact of high-cost loans on consumers and small businesses.

But the new bills – including proposals for establishing a national interest rate of 36% and setting new tariffs for small business lenders – are at an all-time high, with Republicans able to block any legislation in the Senate and lawmakers still preoccupied with other legislative priorities. .

The bills They include a proposal to increase the price of all consumer loans, similar to the federal interest rate imposed on members of the military in 2006. A similar effort failed in 2020 when the Democrats’ bill was split by the House Finance Services Committee.

Proponents of her case have been working to make the actual transcript of this statement available online. Both were co-sponsored by the Coronavirus Assistance, Relief and Economic Security Act and the US Rescue Plan.

Representative Glen Grothman, R-Wis. Meanwhile, Representative Nidia M. Velazquez, DNA, Sponsor, Sponsor of Small Business Loans Statement.

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“This law, which aims to provide protection and relief to those who are struggling financially, is in line with some of the recent actions of Congress,” said Rebekah Born, senior policy adviser at the Liability Center. Consumer advocacy group.

Consumer, civil rights, and religious groups have been pushing for federal interest rates to control high-cost loans for years.

On Monday, Representative Glen Gromman, R-Weiss, reaffirmed the Veterans Equity Loan Act with Jesus “Choi” Garcia, Dill and 14 co-sponsors. The bill extends the military loan law to 36% of annual payments on payday, high-cost payments, car ownership loans and credit cards for all consumers. The MLA Rate Cap currently applies only to service members and their families but not to veterans or surviving spouses.

Senate Banking Committee convened Trial In July, he was joined by Chair Brown Brown, De-Ohio and Sens Jack Jack Reed, DR.I., Jeff Merckley, D. Ore, Chris van Hollen, MD Both bills were first presented in late 2019.

Meanwhile, on Thursday, Representative Nidia M. Velazkez, DNA, Chairperson of the House Small Business Committee and Senator Robert Mendes, DNJ, introduced the Small Business Loans Statement. Along with the accompanying Senate law, small business lenders require lenders to disclose the truth about loans as key loan terms. The Bureau of Consumer Financial Protection also authorizes police for small business lenders.

However, while both options are likely to be approved by the lower house, analysts are still skeptical that they will get the required 10 Republican votes in the Senate. Meanwhile, Congress is still busy trying to pass a better social spending package for President Biden.

However, the legislative campaign to establish inflation and small business loan statements may still focus on certain lending practices.

Although I think these calculations do not apply, we must expect to put significant pressure on high-cost lenders, said Isaac Boltansky, BTG Institutional Marketing Director and Director of Policy Studies. And a research organization. “I think these bills are primarily used as remittance documents to provide some political cover for government action and control measures, which would be a major blow to high-cost lenders.”

The bill comes more than a year after the Trump administration’s Consumer Financial Protection Office burned down. Payday Loan Regulation It imposes restrictions on small dollar lenders.

A.D. In 2015, Congress expanded the military lending law to service members, including credit cards, payday loans, and overpaid lines at 36%. A.D.

Experts say lenders have been able to comply with MLA changes. They have some lenders Voluntarily No more than 36% of the maximum annual interest rate on private loans, including expenses and payments.

“We could not extend it to everyone because the military loan law was a very good one and it was very easy to implement. Director of the Law School of Law at Loyola University Chicago School of Law.

Cantwell, former CFPB assistant director of service at the Office of Member Member Affairs, helped draft a tariff law with Christopher Peterson, a professor of law at Utah SJ Quinn College of Law and former CFPB special adviser.

Consumer groups say federal discounts have wider public support from some business groups, including state-level and the US Fintech Council.

Last year, 83% of Nebraska voters approved a motion to reduce annual rates on payday loans to 36%. Illinois Governor JB Pritzker Signed The March issue is worth 36 percent.

So far, 18 states and the District of Columbia have imposed payday loan restrictions. And 45 states have set price limits. Some types Payment loans at the National Consumer Law Center.

But Republicans and industry representatives have long argued that imposing restrictions on mortgage rates could hurt consumers by restricting access to credit.

Some argue that high interest rates do not necessarily translate into higher costs. For example, a $ 200 payday loan that pays off in two weeks carries an annual cost of 520% ​​but the consumer may be willing to pay up to $ 40 for instant cash.

“Americans need to be able to make their own decisions about credit,” says Tom Miller, a professor of finance at Consumer State University and a senior fellow in consumer research. What do low-income consumers do if there is still a demand for loans to cover some basic living expenses, but no loans?

Proponents of the bill, which calls for clarification on small business loans, are also seeking bilateral support at the state level, and Republican lawmakers want to promote fair and competitive markets.

“The purpose of this bill is to enable small businesses to buy,” said Sandsco-Pek, director of public policy for San Francisco’s online lender. “It also creates market incentives to reduce borrowing costs because lenders have to compete in price.”

California In 2018, it passed a law requiring disclosure requirements under federal lending law, $ 500,000 or less for commercial purposes. Descriptions generally include the total cost of the finances, such as dollars and annual prices. New York passed a similar law last year and similar bills are pending in Connecticut, Maryland, New Jersey and North Carolina.

A study by the Federal Reserve found that small businesses were not provided with the information they needed to compare loan prices, and that some commonly used benchmarks were misleading.

However, Republicans may not be willing to give more power to the CPPB to small business lenders because of their general opposition to the agency.

However, legislators may be more willing to investigate small business loans because many loans are secured by real estate, such as real estate, and put business owners at risk.

The law firm estimates that it will save close to one million small business owners about $ 4.7 billion a year.

Boltansky says both ideas are aimed at creating a buzzword for Democrats to help consumers and small businesses and to influence government action. It also expects more pressure from regulators on banks that cooperate with outsourced lenders.

“We have to wait for more hearings and more press releases and more public statements because these Democrats are concerned,” Boltansky said.

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