Senate reintroduces the Veterans and Consumers Fair Credit Act

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Aaron Colonnese
Content Creator

Author: Aaron Colonnese

Content Creator

 

Started on staff: 2020
B.A., Brown University

Aaron writes and designs materials with the Creative Team for The Public Interest Network for U.S. PIRG. Aaron lives in Arlington, Massachusetts, and spends his spare time playing drums and going for long walks.

High-cost loans are marketed as easy paths to earning extra cash, but the reality is far less enticing. They’re long-term debt traps, often carrying triple-digit interest rates that can cost more than two or three times the original loan amount.

On July 28, the Veterans and Consumers Fair Credit Act (VCFCA) was proposed in the Senate Committee on Banking, Housing, and Urban Affairs. If passed, the bill would cap interest rates on loans at 36 percent and will go a long way toward protecting consumers, especially veterans, who are targeted by predatory lenders.

“We commend Sens. Reed and Merkley, Chairman Brown, and the other bill co-sponsors for introducing the Veterans and Consumers Fair Credit Act to end the predatory debt trap in America," said Mike Litt, U.S. PIRG’s consumer campaign director.

“Rate caps to stop usury are wildly popular across the political spectrum and have passed with flying colors in blue and red states alike. Now, it’s time to protect consumers in all states. "

Read more.

Learn more about our other campaigns to protect consumers in the marketplace.

Photo: The Veterans and Consumers Fair Credit Act would extend the Military Lending Act protections to all Americans. A 36 percent maximum interest rate would apply to many consumer loans, including payday and high-cost installment and auto title loans. Credit: Tony Webster via Flickr, CC BY 2.0

Aaron Colonnese
Content Creator

Author: Aaron Colonnese

Content Creator

 

Started on staff: 2020
B.A., Brown University

Aaron writes and designs materials with the Creative Team for The Public Interest Network for U.S. PIRG. Aaron lives in Arlington, Massachusetts, and spends his spare time playing drums and going for long walks.