May 21, 2019

May 21, 2019

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May 20, 2019

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Sen. Durbin Reintroduces Bill to Cap Consumer Loans at 36 Percent

Last week, Senator Dick Durbin, D-Ill., reintroduced a bill, the “Protecting Consumers From Unreasonable Credit Rates Act of 2019,” that would create a national interest-rate cap of 36% on consumer loans. The legislation would make all open-end and closed-end consumer credit transactions, including mortgages, car loans, and payday loans, subject to a 36% APR limit. The limit would match the current interest rate limit under the Military Loan Act and would not preempt lower state interest rate caps. Supporters of the legislation include the NAACP, AFSCME, and National Consumer Law Center. Previous versions of this legislation appeared in 2008, 2009, 2012, 2013, 2015 and 2017 but the bills never made it to the floor of the Senate or House of Representatives. We believe that this bill will share a similar fate.

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Andrew "Buzz" Carobus litigation lawyer Ballard Spahr
Attorney

Andrew "Buzz" Carobus is an attorney in the firm's Litigation Department who focuses his practice on matters pertaining to consumer financial services. Buzz regularly represents lenders and servicers in contested foreclosure, collection, and credit card-related litigation, as well as affirmative lawsuits brought by consumers in state and federal court. He participates in all aspects of litigation and discovery, including responding to preliminary objections, drafting motions, and conducting depositions.

Buzz previously served as an Assistant District Attorney in...

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