Proposal to End Usury and Debt Slavery in the United States
Title: The Debt Abolition and Fair Lending Act of 2024
Purpose: To eliminate the practice of usury that leads to debt slavery, to ensure fair lending practices, and to provide mechanisms for individuals and governments to manage debt without accruing interest.
Definitions:
-
Usury: The practice of lending money at unreasonably high rates of interest.
-
Debt Slavery: A state where individuals or entities are bound by debt they cannot realistically repay due to perpetual interest.
-
Interest: The fee charged for the use of borrowed money, typically expressed as an annual percentage rate (APR).
Section 1: Prohibition of Interest on Government Loans
-
Subsection 1.1: No federal, state, or local government shall enter into a financial agreement or loan with any bank, including the Federal Reserve Bank, where the repayment includes interest.
- Clause 1.1.1: All loans shall stipulate that only the principal amount is to be repaid, without any interest, fees, or other charges that exceed the borrowed amount.
Section 2: Regulation of Interest Rates for Consumer and Commercial Loans
-
Subsection 2.1: Interest on consumer and commercial loans shall be capped at 0% APR for loans directly impacting public services, housing, education, healthcare, and small business operations.
- Clause 2.1.1: Exceptions can be made for loans used for speculative investments, where interest rates can be negotiated but must not exceed a rate to be determined by a new Federal Usury Oversight Committee.
Section 3: The Federal Usury Oversight Committee
-
Subsection 3.1: Establishment of a Federal Usury Oversight Committee to:
-
Monitor banking practices for compliance with this Act.
-
Set and adjust the maximum allowable interest rate for non-exempt loans.
-
Investigate and penalize banks or financial institutions found in violation of this Act.
-
Section 4: Debt Relief and Restructuring
-
Subsection 4.1: Implementation of a Debt Relief Program:
-
Clause 4.1.1: Any individual or entity currently under usurious debt contracts can apply for debt restructuring where all accrued interest is forgiven, and only the principal remains to be paid back over a reasonable term.
-
Clause 4.1.2: Establishment of a national debt forgiveness initiative for debts identified as resulting from usurious practices, particularly targeting those who have been in perpetual debt.
-
Section 5: Enforcement
-
Subsection 5.1: Legal actions against institutions that violate this Act shall be pursued by the Department of Justice:
-
Clause 5.1.1: Penalties include fines equal to twice the amount of interest illegally charged, and in severe cases, revocation of banking charters.
-
Clause 5.1.2: Civil lawsuits by affected parties are encouraged and supported by the provision of legal aid for cases of usury.
-
Section 6: Reporting and Transparency
- Subsection 6.1: Financial institutions must provide clear disclosures regarding all loan terms, ensuring no hidden fees or escalating interest rates are applied post-agreement.
Section 7: Economic Impact Assessment
- Subsection 7.1: The Treasury Department, in coordination with the Federal Reserve, must conduct an annual assessment on the economic impacts of this Act, adjusting policies as necessary to avoid unintended economic consequences.
Section 8: Effective Date
- Subsection 8.1: This Act shall take effect six months after its passage to allow financial institutions time to adjust their operations and systems.
Section 9: Severability
- Subsection 9.1: If any provision of this Act or the application thereof to any person or circumstance is held invalid, the remainder of the Act, or the application of such provision to other persons or circumstances, shall not be affected thereby.
Section 10: Amendments to Existing Laws
- Subsection 10.1: This Act shall supersede any conflicting federal or state regulations concerning interest rates on loans.
This legislative proposal aims to align with the legal framework of the United States, addressing the moral and economic issues associated with usury while ensuring that the financial system remains stable and fair.