Ocasio-Cortez says bill would 'destroy' predatory payday loan industry

Ocasio-Cortez says bill would 'destroy' predatory payday loan industry
© Getty Images

Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezOmar responds to 'send her back' chant with Maya Angelou quote Trump blasts minority Democrats, rally crowd chants 'send her back' Trump refers to Ocasio-Cortez as just 'Cortez' because it 'takes too much time' to say full name MORE's (D-N.Y.) team said the Loan Shark Prevention Act she unveiled Thursday alongside Sen. Bernie SandersBernie SandersSanders to call on 2020 Democrats to reject money from drug, health insurance industries The hidden connection between immigration and health care: Our long-term care crisis Harris tops Biden in California 2020 poll MORE (I-Vt.) would "destroy" the payday loan industry. 

"The bill will officially cap all interest rates on consumer loans at 15% — lowering the credit card rates of millions of Americans, and functionally destroying the predatory 'payday' loan industry," her team said in an email to supporters. 

ADVERTISEMENT

"Predatory lending and our credit rating system targets lower income Americans and people who are living paycheck to paycheck with manipulative practices and hidden fees — trapping millions in a cycle of systemic poverty as their hard-earned money is funneled into exorbitant bonuses for Wall Street executives," the email also said. 

The lawmakers on Thursday announced that they would introduce the legislation in a livestream video. They also tweeted about the measure. 

 

A payday loan is a short-term loan that is borrowed at a higher interest rate. Sanders is among more than 20 Democrats running for president in 2020.

Ocasio-Cortez is a member of the House Financial Services Committee. Last month she grilled leaders of major banks over whether more people should have gone to prison for their roles in the 2007 financial crisis.