SENATE BILL: Loan Shark Prevention Act (Passed)

[Devout Centrist]

Presenting the following amendment:

SENATE BILL
To protect consumers from usury
Be it enacted in both Houses of Congress

Section 1; Title
1. This legislation may be cited as the "Loan Shark Prevention Act".
Section 2; Substance
1. Interest rates Annual percentage rates (APR) on credit cards shall be capped at a maximum of 15%17%.
a) If state or regional laws prescribe a lower cap, then nothing in this legislation shall prevent the lower cap applying instead of the 1517% cap.
b) Any fees that are not considered finance charges shall not be used to evade the limitations of this paragraph, and the total sum of such fees shall not exceed the total amount of finance charges assessed.
c) The maximum APR for super prime credit holders shall be set to 13%
d) The maximum APR for prime credit holders shall be set to 15%
e) The maximum APR for all other credit holders shall be set to 17%
2. The Federal Reserve shall have the authority to waive the prescribed 15% 17% interest rate cap for a maximum of 18 months if-
a) A determination is made that prevailing interest rate levels seriously threaten the safety and soundness of individual lenders, as evidenced by meaningful adverse trends in liquidity, capital, earnings and growth.
b) This clause shall not affect the regulations regarding credit unions.
3. If a fee or interest rate greater than the cap prescribed in this legislation is knowingly charged to consumers, the entire interest shall be forfeited.
a) A usurious collection that is forbidden by this legislation shall be able to be entirely recovered from the lender provided that a legal action is brought no later than 2 years after the date on which the last usurious collection was made.
b) Nothing in this section shall be construed to pre-empt state or regional laws that provide greater consumer protection than in this legislation.
Section 3; Implementation
1. This legislation shall come into effect one year after its passage into law.

[Esteemed Jimmy]

Presenting the following amendment:

SENATE BILL
To protect consumers from usury
Be it enacted in both Houses of Congress

Section 1; Title
1. This legislation may be cited as the "Loan Shark Prevention Act".
Section 2; Substance
1. Interest rates Annual percentage rates (APR) on credit cards shall be capped at a maximum of 15%17%.
a) If state or regional laws prescribe a lower cap, then nothing in this legislation shall prevent the lower cap applying instead of the 1517% cap.
b) Any fees that are not considered finance charges shall not be used to evade the limitations of this paragraph, and the total sum of such fees shall not exceed the total amount of finance charges assessed.
c) The maximum APR for super prime credit holders shall be set to 13%
d) The maximum APR for prime credit holders shall be set to 15%
e) The maximum APR for all other credit holders shall be set to 17%
2. The Federal Reserve shall have the authority to waive the prescribed 15% 17% interest rate cap for a maximum of 18 months if-
a) A determination is made that prevailing interest rate levels seriously threaten the safety and soundness of individual lenders, as evidenced by meaningful adverse trends in liquidity, capital, earnings and growth.
b) This clause shall not affect the regulations regarding credit unions.
3. If a fee or interest rate greater than the cap prescribed in this legislation is knowingly charged to consumers, the entire interest shall be forfeited.
a) A usurious collection that is forbidden by this legislation shall be able to be entirely recovered from the lender provided that a legal action is brought no later than 2 years after the date on which the last usurious collection was made.
b) Nothing in this section shall be construed to pre-empt state or regional laws that provide greater consumer protection than in this legislation.
Section 3; Implementation
1. This legislation shall come into effect one year after its passage into law.

Senators have 24 hours for objections.

[Southern Senator North Carolina Yankee]

The amendment is adopted.

[Devout Centrist]

I motion for a final vote

[ON Progressive]

I motion for a final vote

Senators have 24 hours to object.

[Southern Senator North Carolina Yankee]

A final vote is now open on the Loan Shark Prevention Act, Senators please vote Aye, Nay or Abstain.

[Former President tack50]

Aye

[Devout Centrist]

Aye

[Southern Senator North Carolina Yankee]

AYE

[Southern Senator North Carolina Yankee]

This ends later today, and we are short of a majority voting.

[ON Progressive]

Aye

[Vern]

Aye

[Southern Senator North Carolina Yankee]

Vote on Final Passage of the Loan Shark Prevention Act:

Aye (4): Devout Centrist, NC Yankee, Ontario Progressive, and Tack50
Nay (0):
Abstain (0):

Didn't Vote (1): Comrade Funk and Vern1988 (voted too late)

This has passed the Senate and is sent to the VP.

[Southern Senator North Carolina Yankee]

SENATE BILL
To protect consumers from usury
Be it enacted in both Houses of Congress

Section 1; Title
1. This legislation may be cited as the "Loan Shark Prevention Act".
Section 2; Substance
1. Annual percentage rates (APR)on credit cards shall be capped at a maximum of 17%.
a) If state or regional laws prescribe a lower cap, then nothing in this legislation shall prevent the lower cap applying instead of the 17% cap.
b) Any fees that are not considered finance charges shall not be used to evade the limitations of this paragraph, and the total sum of such fees shall not exceed the total amount of finance charges assessed.
c) The maximum APR for super prime credit holders shall be set to 13%
d) The maximum APR for prime credit holders shall be set to 15%
e) The maximum APR for all other credit holders shall be set to 17%
2. The Federal Reserve shall have the authority to waive the prescribed 17% interest rate cap for a maximum of 18 months if-
a) A determination is made that prevailing interest rate levels seriously threaten the safety and soundness of individual lenders, as evidenced by meaningful adverse trends in liquidity, capital, earnings and growth.
b) This clause shall not affect the regulations regarding credit unions.
3. If a fee or interest rate greater than the cap prescribed in this legislation is knowingly charged to consumers, the entire interest shall be forfeited.
a) A usurious collection that is forbidden by this legislation shall be able to be entirely recovered from the lender provided that a legal action is brought no later than 2 years after the date on which the last usurious collection was made.
b) Nothing in this section shall be construed to pre-empt state or regional laws that provide greater consumer protection than in this legislation.
Section 3; Implementation
1. This legislation shall come into effect one year after its passage into law.

People's Regional Senate
Passed 4-0 in the Atlasian Senate Assembled,