Charging interest for borrowing of money should be illegal. It makes the lendee a slave to the lender.
10 Likes
Lending has been around as long as and before we had a form of money. With that said the practice of steep interest rates are robbery. I have a credit rating of 700 yet I pay 38% interest rate. There definitely needs to be and interest rate cap in place.
11 Likes
This is an area where I beleive government intervention has reduced market competitiveness. If we reduce restrictions on becoming a financial institution and offering credit products we can improve market competitiveness. Those with less financial backing might not be able to compete on the same global scale as the large banks but could offer significantly better (lower rate) credit products, driving a better product for consumers.
Rather than outlawing or capping interest rates, we provide opportunity for others to become lenders, business owners, and successful financiers. This is currently done in some capacity with credit unions but there are still significant regulatory requirements and restrictions that prevent the average person from being able to start offering financial products.
Agreed. Business owners can become their own lenders though. It is how all credit card companies began, by retailers offering credit to their customers.