Dumb question, but what does "calling them mean?"
I'm asking because I have outstanding credit balance so I wonder if it will just mean I have to pay it off immediately or something. Although it's technically unsecured so I'm not sure how they call the loans back
Calling a loan means the lender would demand immediate repayment.
Right now, the fed fund rate is like 4.3% so to cap banks at 10%, that delta juice isn't worth the squeeze. The fact they can get 15-25% from subprime borrowers funds the whole kit and kaboodle.
If capped at 10%, they'd just be better off investing the money themselves versus offering credit services.
I see. What would be the "stick" they would use to get the loans back? Tanking credit score? Fees that don't fall under APR classification?
