Calif to cap consumer loan interest rates?

California advances bill to cap consumer loan interest rates
The bill would cap the interest rates on consumer loans at 36 percentage points above the main interest rate set by the Federal Reserve which is currently around 2%. Payday lenders do charge much much more in interest.

I understand this side of this issue but generally prefer the Gov to stay out of it

 

It is another form of price controls. What do price controls always result in eventually? Supply shortages.

 

And plenty of states (including Texas) impose caps on interest. They're called usury laws. That's why we have loan sharks.

 

Will California place a cap on how high the tax rates can be there?

 

California currently has a usury law that caps the rate lenders can charge consumers at %10
As I understand it the exceptions made in the laws ( and in most states) make it confusing and can be skirted.
Texas' cap is 6%

 

Yes, that is true. The exceptions are broad, and it can be confusing. I learned about usury laws in Consumer Protection class back in 2001. I generally understood the law's applicability back then, but I haven't thought about it since then and can't claim much expertise on it today. I've slept a lot and drunk a lot since then. That was probably a good 10,000 beers ago. Lol

 

MrD
That is about 1.5 beers a day.
Around here you'd be called a slacker or a lightweight.

 

Except that, ALWAYS lost in these discussions, is that the payday lenders do not intend for their loans to extend for a yearlong duration. They are DESIGNED to be short-term in nature, with the fee for the month-long term being LESS than the bounced check would have been.

The victimhood demographic would prefer to have people look at an annualized rate instead of the reality of providing a service to the fiscally under-served that are ALSO often a high credit risk. The woe-is-me crowd ALSO ignores that ALL costs were disclosed in advance of the contract being signed...why should the government continue to mollycoddle the perpetually stupid?

So, yay...let's close a door to those who actually NEED the funds and won't be getting it from their bank...instead, they WILL be in the backrooms and alleys LOOKING for the loan sharks that have zero regulation.

 

mb
good points. I have known people who needed "payday" loans who understood they would have to pay more. And they did.
I also think there are people who do not comprehend what it all means and end up in ever increasing loops.
Is that something we the gov't should be involved in?
The only part about the Calif law that might make sense is it "would also require lenders to offer borrowers a credit education summary."
Whatever that means and not sure how many who really need it would pay attention to it.

 

I probably overstated my beer drinking. In Texas, I usually only drank on weekends. I left in October 2011 and moved to the Azores. While there, I would say I probably drank a beer every two days. I moved to Germany in February 2013. Since moving here, I definitely average one per day. I may go a day without one, but I'll sometimes drink two in a day. I keep the place very stocked with brew. This contraption is in the room adjacent to my garage, and these aren't 12-ounce bottles. They are half-liter bottles.

 

Looks like Ayinger on the top left

 

You have a good eye. That is one of Mrs. Deez's favorites. You can get it in the US, but it costs about triple what it does here. Here's the rundown from the top left and left to right.

Ayinger Brauweisse (a wheat beer)
Andechs Spezial Hell (a lager)
Andechs Weissbier (another wheat)
Stiegl Goldbrau (another lager)
Hofbrau Oktoberfest
Paulaner Oktoberfest

These are all from the Munich area, except for the Stiegl, which is from Salzburg, Austria.

 

Mr D
you Sir are clearly NOT a slacker

 

The color of the cap and label on the neck looked familiar.

Have you indulged in any Rauchbier? Aecht Schlenkerla makes several very good ones, though the Bock is my favorite.

 

Ok, I just lost respect. Why keep that much beer if you drink one or two beers per day unless you are talking in half liters instead of 12oz beers. In that case I understand.

 

Yes. It's quite good. In fact, before moving here, I had never tried anything quite like that, so it was a new experience for me. I like to drink it during the winter.

 

I drink half-liters (about 17 ounces). Also, there are two of us. The wife is the big wheat beer drinker.