We recently received some good news from our friends at the Center for Responsible Lending that a New Hampshire court has ruled that loans which charge 365% interest rates are illegal under state law. Hopefully, Tennessee will soon follow suit.
Right now consumers in Tennessee are faced with paying well over 200% interest rates for loans from pay day and car title lenders, but TNCA is working with the Tennessee Coalition for Responsible Lending to pass legislation which would cap such loans at reasonable rates.
The importance of stamping out these usurious loans is hard to overstate. Even though the short term loan industry claims people need these loans, a recent study found that people approved for these loans go into bankruptcy far more often then those rejected.
Sunday, February 1, 2009
Wednesday, January 21, 2009
Launching the New Blog with a Strong Agenda
Today we're launching our new blog "The Watchdog" by laying out our legislative agenda for the 2009 session. Our major focus will be on two main issues, predatory lending and nursing home protection, while still watching and working on other items as they come up . We plan to work closely with legislators on both sides of the aisle to make sure our agenda is passed. With some issues, such as predatory lending, we will be pushing to pass bills which help end some of the worst business practices in the state. On other issues, like nursing home protection, we will be fighting against bills which try to keep people who have been hurt by careless service providers from receiving fair compensation.
In the area of predatory lending, we will be working with the Coalition for Responsible Lending in Tennessee in supporting a bill regulating the rates which title lending companies can charge their customers. Currently such businesses charge the outrageous rate of 264% annual interest on their loans. We seek to cap such rates at 44%, which we believe is a number that will still allow lenders to profit but without trapping consumers in an endless cycle of debt.
We are also looking to support legislation requiring counseling for consumers looking into high priced home loans. With all the damage caused by the sub prime mortgage disaster, it is imperative that the legislature makes sure lenders fully disclose the terms of the loans and how they will affect the long term financial health of the borrowers.
Another area TNCA is focused on is nursing home protections. We know that it often when people need protection the most, that unscrupulous businesses will pounce. In the case of the elderly it is far to often the case that families trying to do the right thing end up placing their loved ones in the hands of people more interested in the bottom line, then providing quality care. Citizen Action will be working against bills which are designed to let nursing homes go unpunished for their negligent behavior and which seek to tip the scales of Justice in favor of the big nursing corporation against the families whose loved ones have been hurt.
We will be updating this blog regularly with new information about what's happening on Capitol Hill and ways you can get involved in making a difference. Please subscribe and check back often to see the latest on what's happening with Tennessee Citizen Action.
In the area of predatory lending, we will be working with the Coalition for Responsible Lending in Tennessee in supporting a bill regulating the rates which title lending companies can charge their customers. Currently such businesses charge the outrageous rate of 264% annual interest on their loans. We seek to cap such rates at 44%, which we believe is a number that will still allow lenders to profit but without trapping consumers in an endless cycle of debt.
We are also looking to support legislation requiring counseling for consumers looking into high priced home loans. With all the damage caused by the sub prime mortgage disaster, it is imperative that the legislature makes sure lenders fully disclose the terms of the loans and how they will affect the long term financial health of the borrowers.
Another area TNCA is focused on is nursing home protections. We know that it often when people need protection the most, that unscrupulous businesses will pounce. In the case of the elderly it is far to often the case that families trying to do the right thing end up placing their loved ones in the hands of people more interested in the bottom line, then providing quality care. Citizen Action will be working against bills which are designed to let nursing homes go unpunished for their negligent behavior and which seek to tip the scales of Justice in favor of the big nursing corporation against the families whose loved ones have been hurt.
We will be updating this blog regularly with new information about what's happening on Capitol Hill and ways you can get involved in making a difference. Please subscribe and check back often to see the latest on what's happening with Tennessee Citizen Action.
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