Senator Bernie Sanders and Rep. Alexandria Ocasio-Cortez came together to introduce legislation that would impose a federal cap on interest rates placed on consumers by credit card companies. The Loan Shark Prevention Act hopes to combat what the two high profile congressional faces called the "predatory lending practices" of banks and give protection to consumer struggling with high rates.

"The reality is that today’s modern-day loan sharks are no longer lurking on street corners breaking kneecaps to collect their payments,” said Senator Sanders. “They wear three-piece suits and work on Wall Street, where they make hundreds of millions in total compensation and head financial institutions like JPMorgan Chase, Citigroup, Bank of America and American Express.”

The legislation would extend rules already placed on credit unions to all banking institutions allowing for a more fair banking system and ending the practice of high-interest loan distributors preying on the Black community.

"There is no justifiable reason that a person—no matter their background—should be charged an interest rate higher than 15 percent." Representative Ocasio-Cortez said, "Rates higher than 15 percent are predatory debt traps, designed to keep working families underwater and allow predatory companies to enrich themselves off the misfortune of others.”

Credit card interest rates are outrageously high. With @RepAOC, we are introducing legislation to challenge the greed of Wall Street and protect consumers across America. https://t.co/eFltL754AG

— Bernie Sanders (@SenSanders) May 9, 2019

The legislation would also create a postal banking system, allowing for banking service to reach traditionally unserved or underserved communities.

"The Postal Service already cashes Treasury checks and issues money orders. The USPS should fully exercise its existing statutory authority and implement pilot programs offering affordable financial services, including ATMs, paycheck cashing, bill payment and electronic money transfers in post offices,” both the senator and representative teamed up to write in a joint statement.

Though the bill has little chance of passing with Republicans in control of Senate and White House, Ocasio-Cortez was hopeful that this legislation would continue to move the political discussion toward positive change in the future.

What I love about big and ambitious ideas, whether it’s this or the Green New Deal, is it forces the Republicans to change their agenda,” Ocasio-Cortez said taking credit for Senate Majority Leader Mitch McConnell acknowledging the existence of man-made climate change last month. “Now we’re going to get Republicans on the record saying that extortionary interest rates are wrong and that we gotta do something about it.”

Now check these out:

Rep. Ayanna Pressley and Sen. Cory Booker Team Up To Improve Maternal Health

House Committee Introduces Anti-Child Abuse Bill Inspired By Killing Of 11-Year-Old Heaven Watkins

Homelessness May Not Be A Flashy Issue But Here’s Why It Deserves To Be Discussed

credit card debt

Get relevant content delivered to you once a week