Comments on: Illinois Senator Durbin Proposes Cap on Consumer Credit Interest Rate

By: Ron Bullok

Ron Bullok — Fri, 12 Jun 2009 14:50:19 +0000

Anyone who has had any contact with Payday Loans realizes that those interest rates are destructive and cause a high percentage of those loans to fail. Pawn loans are a completely different kind of transaction and allow consumers with short term needs to borrow using things they own as collateral. Most pawn shop customers are unable to qualify for bank or even finance company loans. The pawn industry serves as vital need for many people, lowering the rate to 36% would cause those sources of credit to disappear, cutting off loans to people who need them and putting everyone in the industry out of work. The fact is that pawn shops making loans to the military must have a lot of non-military customers paying normal rates or they would be forced to go out of business. The effect of legislation that is supposed to help consumers would cut off one of the only available sources of short-term cash for those consumers.

By: Richard Gonzalez

Richard Gonzalez — Thu, 04 Jun 2009 16:23:01 +0000

I understand that the Payday loan interest in extremely high but why are collaretal loans mentioned in this s.500 bill.Pawnshops are consumers last hope in receiving loans that will carry them foward through the next pay period.Pawnshops will not be able to stay open and continue helping the unfortunate cunsumers who can not walk into a bank and obtain a signature loan much less walk into a Payday Loan comoany and never see their next check due to paying 300% or more on interest.Pawn loans are used for consumers who have already purchased an item and use that material as collateral to make it until the next pay period.

By: k. mccall

k. mccall — Wed, 11 Mar 2009 22:50:33 +0000

What is the status of Senator Durbin’s consumer interest rate cap proposal and what level of support is it receiving?
thanks