Senate Majority Whip Dick Durbin (D-IL) and three co-sponsors recently introduced yet another ill-advised bill to impose a nationwide All-in 36 percent interest rate cap. The measure would mean that lenders would be prohibited from offering loans, regardless of their length or the risk posed by the borrower, with a rate above 36 percent, including fees, which the law interprets as adding to the financing cost.
Lawmakers have proposed similar bills that simply run afoul of the research. With this bill, however, Sen. Durbin appears to be out of touch with what happened in his own home state when the legislature there imposed a similar rate cap in 2021.
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