Fair Interest Rates Bill (Law'd)

[Franzl]

It's a difficult topic.

I'm not a fan of regulating stuff...obviously, but I'm willing to consider reasonable credit card interest rates.

Might surprise some people....but I'd prefer to simply ban the practice of payday loans.

[Franzl]

I'm much more comfortable with setting a maximum interest rate than letting the state determine who is allowed to get credit at all, fwiw.

[Franzl]

I'm much more comfortable with setting a maximum interest rate than letting the state determine who is allowed to get credit at all, fwiw.

     Seriously, I am as well, but there is a severe attitude problem in society that the former would do nothing to rectify.

We'd have to ban credit cards to rectify that problem

[Franzl]

I object to the amendment being accepted as friendly and request a vote.

Seems crazy to me to subsidize half of someone's interest simply if they're willing to attend a short course.

[Franzl]

I object to the amendment being accepted as friendly and request a vote.

Seems crazy to me to subsidize half of someone's interest simply if they're willing to attend a short course.

     Maybe make the course longer & simply require the company to reduce the interest rate rather than subsidize it?

We aren't subsidizing half of the person's interest. That would be insane. We are providing subsidies that would induce the credit card company to reduce the rate by half for that person. I hardly find it acceptable to mandate that these companies reduce their rates without incentive. That is detrimental manipulation and would likely harm those seeking credit.

     Isn't that what this bill already does in regards to people who are currently getting charged over 20% interest?

Yes, correct.

Although I can imagine supporting a maximum interest rate....but I just find it absurd to offer to pay for half of someone's interest if they're willing to attend a course. Why should the state be subsidizing somebody's poor spending habits?

[Franzl]

BTW, does the idea of banning pay day loans have any support in the Senate?

[Franzl]

Nay

[Franzl]

I change my vote to AYE just to get things moving. I don't really want this to sit for a week.

However, I will now work to either change this bill considerably or prevent its passage entirely.

[Franzl]

Amendment:

Payday loans are banned. Anybody providing them is guilty of a crime punishable by up to a $500,000 fine.

[Franzl]

Aye

[Franzl]

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OK...this is part of the current bill, and it is something that would prevent me from voting for final passage.

Let me offer a compromise:

The government of each region shall administer a 6-hour education course on the proper use and risks of credit. Upon completion of the course and passage of a final examination, the government shall offer a loan equal to one year's worth of credit card payments, which shall be paid back to the government at an interest rate of 10%. A passing grade on the final examination shall be deemed as performance exceeding 75%, not to be interpreted as to prevent or overwrite stricter grades in any region.

[Franzl]

I should stress, of course....that it should replace the former amendment

I'm willing to support that because the government does eventually get it's money back....and it still provides relief to the person in debt....as 10% are certainly lower than any credit card company would offer.

[Franzl]

I should stress, of course....that it should replace the former amendment

I'm willing to support that because the government does eventually get it's money back....and it still provides relief to the person in debt....as 10% are certainly lower than any credit card company would offer.

Of course. I brought the previous amendment just to get the ball rolling. It is one of those mysterious parts of Atlasia: nothing gets done until someone does something extreme, then people go nuts and look for a way to fix it. I would be more than happy to support this superior solution.

Yes, that's true. Makes sense to propose something radical in order to force some sort of middle ground.

[Franzl]

AYE ftr

[Franzl]

I'm happy that we've been able to come to an acceptable compromise for everyone....and I can vote AYE in good conscience.