AOC Comes Out Against Usury

Chris Menahan
InformationLiberation
May. 09, 2019

New York Democratic Rep Alexandria Ocasio-Cortez on Thursday called for an end to usurious high interest credit cards and said the usury laws of the 1970's (where usury ceilings were generally around 8 to 10 percent) were "common sense."

Alexandria Ocasio-Cortez tweeted: "There is no reason a person should pay more than 15% interest in the United States. It's common sense - in fact, we had these Usury laws until the 70s."

There is no reason a person should pay more than 15% interest in the United States.

It’s common sense - in fact, we had these Usury laws until the 70s.

(Max interest rates are record-high for ppl with excellent credit, too.)

It’s a debt trap for working people + it has to end. https://t.co/tYf4J892KQ
— Alexandria Ocasio-Cortez (@AOC) May 9, 2019

“This is crazy!”
“Just pay your bills!”
“You need higher interest for poor people!”

1st of all, 15% interest is already a TON.

Most credit unions are subject to usury law; they’re quite sound. in fact, they’re the few who DIDN’T need a bailout in ‘08.

So let’s talk about it ⬇️ https://t.co/eVe2ltEs1s
— Alexandria Ocasio-Cortez (@AOC) May 9, 2019

From Bloomberg:

Democratic presidential candidate Bernie Sanders and Representative Alexandria Ocasio-Cortez accused banks of acting as “modern-day loan sharks” and called on Congress to enact a federal limit of 15% on credit card interest rates.

The two self-identified democratic-socialists are set to propose legislation on Thursday capping rates on credit card and other consumer loans and letting post offices offer low-cost basic financial services, such as loans and checking and savings accounts.

An outline of the plan released ahead of their formal announcement sharply criticized banks for charging on average more than 17% interest on credit card balances while they are able to borrow money at less than 2.5%.

“Today’s loan sharks wear expensive suits and work on Wall Street, where they make hundreds of millions of dollars in total compensation by charging sky-high fees and usurious interest rates,” the statement said.

With Republicans in control of the Senate, the proposal has little chance of becoming law any time soon.

Indeed, the GOPe just want to give our banker overlords giant tax cuts.

You have to applaud anytime politicians are criticizing usury.

That’s why we pair usury w/ support for a non-profit banking option esp in key communities: aka Postal Banking.

Big banks won’t service poor communities unless they make a killing off them - that’s why they charge predatory rates.

Doesn’t have to be that way w/ competing model. https://t.co/JHJNxcHQbC
— Alexandria Ocasio-Cortez (@AOC) May 9, 2019

In Texas, the average annual interest rate on a payday loan is 661%.

In Vermont, the payday loan industry doesn’t exist, because interest rates on small dollar loans are capped at 18%.

We must cap interest rates on consumer loans and credit cards at 15% nationwide.
— Bernie Sanders (@BernieSanders) May 9, 2019

This was solid rhetoric:

“I am sure it will be criticized,” Sanders said of the legislation. “I have a radical idea, maybe Congress should stand up for ordinary people.” https://t.co/Naax3OH3W5
— arianna jones (@ariannaijones) May 9, 2019

This was not quite as good:

Banks make record profits discriminating against people of color and denying basic banking services to 63 million adults who are unbanked or underbanked.

We must allow every post office to offer basic, affordable banking services and end lending discrimination once and for all.
— Bernie Sanders (@BernieSanders) May 9, 2019

Forcing banks to give loans to people who can't pay the loans back was the main cause of the 2007 crash. That said, taking our money back from the banks that we gave trillion dollar bailouts to is a great idea, especially when compared to giving them huge tax cuts!

Let's start tomorrow!

[Header image by Stale Grut /NRKbeta, CC BY-SA 2.0]

Follow InformationLiberation on Twitter, Facebook, Gab and Minds.