An end to immoral interest rates?
The most startling development for the anti-usury campaign is the endorsement from the CEO of Citigroup, Vikram Pandit. Like other leading banks, Citi has been kicking up its credit-card rates as high as 30 percent, even as Citi is kept afloat with billions from the taxpayers. Nonetheless, Pandit told editorial writers at the Boston Globe he would support a legal ceiling on interest rates if it is applied industry-wide. “Were completely in support of having a rational rate structure.” Pandit said.
The Citigroup executive did not endorse a specific ceiling, but cited the example of the 10 percent credit cards his bank introduced several years ago, believing other banks would follow and lower their rates too when they didnt, Citi lost money in the venture. The Globes exchange with Pandit was most likely inspired by news stories about the anti-usury actions in Boston.
via Stop Usury Now.
This is a most interesting concept. It would ensure that repayment was more feasible for a larger group of people. When you let interest rates skyrocket the defaults are bound to follow.
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