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-CortezTrump says he will designate antifa a terrorist organization Ocasio-Cortez rips de Blasio after police cruiser drives into crowd of protesters NYPD police cruisers lurch through group of demonstrators protesting Floyd's death MORE's (D-N.Y.) team said the Loan Shark Prevention Act she unveiled Thursday alongside Sen. Bernie SandersBernie SandersJudd Gregg: Biden — a path to the presidency, or not Biden's 'allies' gearing up to sink his campaign Expanding tax credit for businesses retaining workers gains bipartisan support 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.