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Replying to Avatar Svoboda

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.

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gojiberra 11mo ago

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?

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