Fair Interest Rates Bill (Law'd)

[Purple State]

This doesn't seem all that controversial: save people from incredibly detrimental cartel-esque tactics.

[Purple State]

This doesn't seem all that controversial: save people from incredibly detrimental cartel-esque tactics.

     A better way than forcibly denying credit to those who do not make proper use of it?

I would support an amendment, albeit a bit more moderate than that, to ensure that those that you mentioned cannot receive credit.

[Purple State]

The cap would likely be more efficient than any other type of correction we could concoct. It sets the ceiling and allows the companies to adjust appropriately, rather than the government simply saying who can or cannot receive credit.

[Purple State]

Perhaps to assuage your worry of underlying societal problems, the government could administer or promote a course, sort of like driver's ed, that will lower your interest rate if you take it. That way those who never need to make interest payments won't bother to take the taste, while others who could be getting screwed would take the test to help them out and also learn how to better use their cards.

Thoughts? If there is general agreement I can work up an amendment.

[Purple State]

I intend it as an additional clause for this legislation. I offer the following amendment as friendly:

[quote]
4. The government of each region shall administer a 6-hour education course on the proper uses and risks of credit. Upon completion of the course and passage of a final examination, the government shall subsidize a reduction in the individual's credit interest rate by half. 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.

[Purple State]

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.

[Purple State]

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?

I read it as not paying the interest as it comes about, but rather simply providing an upfront payment to incentivize the reduction of the interest rate.

[Purple State]

Can I ask why we are opposing credit education?

Aye

[Purple State]

That's fine with me.

[Purple State]

Seems fine to me.

[Purple State]

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.

[Purple State]

Aye

[Purple State]

Aye

I'm happy we could work in a proper credit education program for Atlasia.