The program would ban pay day loans

“Payday” loans are really short-term loans (the concept is you’re fronted a small amount of cash for per week or two until the next paycheck clears), which carry rates of interest that sound reasonable into the context that is short-term 10 % over fourteen days, say, plus some charges. However in annualized terms, these loans carry a rate that is average of %, as well as in some instances soar far more than that.

This industry features a poor reputation among avid customers of progressive media — Mother Jones’s Hannah Levintova characterized the avoid Loan Sharks Act as a crackdown on “predatory interest prices,” while Sarah Jones at brand brand New York mag stated Sanders and Ocasio-Cortez had been teaming up “against businesses that prey regarding the bad.”