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And the Phony Outrage Is…

Submitted by on April 1, 2009 – 4:26 pm 2 Comments
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The National Cap on Interest Rates Is a Whooping 36%

False – there is NO national cap! As far as the federal government is concerned, lenders can charge any interest rate they like.  And lenders don’t hesitate to drive rates through the roof:  APRs charged by payday lenders can reach 780%, rates for refund anticipation loans can be 1500%, and on overdraft loans they can reach five digits!

Some states do impose “usury” caps on lenders chartered in their states.  But plenty of states— such as Delaware and South Dakota — have no cap at all.  National banks flocked to those states because of these bank-friendly laws (which explains why you usually send your credit card payment to one of these states).  Read AFFIL’s History of Usury for more.

True Outrages:

Wall Street has created something called “life settlements” that pay money to investors when people die

Yes, Wall Street is now betting on your death.  Creepy and all too true.  Read all about it from The New York Times.

One in four credit reports contains a serious error

Sad, but true.  As US PIRG puts it, “The most valuable thing we have is our good name. The most common reflection of our reputation as a trustworthy consumer is our credit report. Unfortunately, the information contained in our credit reports, which are bought and sold daily to nearly anyone who requests and pays for them, does not always tell a true story.”  Read their study about faulty credit reports here.

Take Action!

Prevent another bailout, protect consumers, and end the “too big to fail” era.  Tell Congress to enact real financial reform.

Submit YOUR Outrage!

What do you think is the most outrageous thing the banks have done?  Submit your idea below in the comments section.  If we use it in a future quiz, you could win a prize!

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