Joined: Mar 17, 2005
Location: Staten Island
|Posted: Fri Jan 23, 2009 10:57 am Post subject: The Bailout and Usury Law
From Fri Jan 23, 2009 3:00 am to Fri Jan 30, 2009 2:59 am (included)
|"Usury" is the unlawful act of charging interest on a debt (including discount points, fees and other charges) at a rate greater than what is permitted under any applicable law or exemption from a law.
Usury laws are set by individual states and vary widely.
It is not so surprising that many of the major banks are set up in states that have little or no usury regulation.
This allows the banks to charge exorbitant interest rates, many which come into play after teaser introduction rates.
These same banks sell off this debt when they cannot recover it and in turn write it off on their balance sheets.
The consumer is still held responsible for the total balance owed which at times is much greater than the original amount borrowed.
Many of these same banks have just been bailed out by the Federal government.
The interesting thing is that you do not hear much about what the terms of these bailouts but you can be sure that it is not the 25% - 30% that these banks are still charging their customers.
Wouldn’t it make sense that the government require these banks to ease the burden on their customers since they are getting money almost interest free.
Money that is coming from these same taxpayers.
It seems that this would be a way for the government to ease the credit crunch that many Americans find themselves in.
It would reduce the amount of bankruptcies and prevent these banks (at least those being bailed out) from charging these exorbitant rates.
Instead of the government sponsoring what have become legal loan sharks.