What happened to Usury Laws?
What ever happened to the usury laws?
It is interesting that there has been so much discussion about reducing interest rates to help solve the foreclosure problem. The Federal Reserve has reduced interest rates so low they are negatively impacting the older population who are on fixed income. It has significantly contributed to the decline and fall of the United States dollar and is increasing the prices of oil, heating oil and other commodities, which again impact the middle class, working people and those on fixed income.
But it is interesting there is NO DISCUSSION about the exorbitant "credit card fees and interest" charged by the credit card companies. These companies have encouraged credit card users to have several cards and only to pay the minimum payments. They charge what should be called "usury/ loan shark" interest rates at time in the low 20 percent level. If someone misses a payment they charge hefty fees.
The result is that many consumers are maxed out on their credit cards and pay a significant part of their discretionary income on just paying interest.
There should be an analysis of this situation and a move to force the credit card companies to reduce their interest rates to a reasonable level and stop behaving like loan sharks.
This may be an easier and more effective solve or at least reduce the current liquidity situation.
Bill Rothschild, author of The Secret to GE's Success...available on AMAZON and at your local book store...Visit www.strategyleader.com for more blogs and strategic leadership books and articles.
posted by TheStrategist @ 10:35 AM
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