Voters in South Dakota overwhelmingly approved a measure to cap interest rates on payday, installment and auto title loans at 36 percent.
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More states look to cap consumer interest rates at 36%
Lawmakers in New Mexico recently approved a stringent rate limit, and similar efforts are underway in Rhode Island and Michigan. The state-level actions are among the "numerous headwinds" facing high-cost lenders, one analyst said.
Lawmakers revive effort to enact national interest rate cap
After Democrats failed last year to rally support for a federal 36% limit, House and Senate proponents are trying to capitalize on the momentum from state rate caps that recently passed on a bipartisan basis.
Illinois caps consumer rates at 36%, adopts state-level CRA
Two banking bills signed by Gov. J.B. Pritzker carry implications for payday lenders, auto title lenders, credit unions and nonbank mortgage lenders. Pritzker, a Democrat, said the bills will address racial-equity gaps in the state.
Will the U.S. ever enact a national interest rate cap?
Most states have some kind of pricing limit on consumer loans. But proposals for a national usury law divide even Democrats, some of whom are concerned about restricting credit.
Stern warnings to lenders mulling end run around California rate caps
Federal and state policymakers wagged their fingers this week at high-cost lenders that might be looking to team with banks to evade a 36% ceiling on interest rates.
