Serious concerns lurk under surface of loan shark joke
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The growing movement to impose 36 percent interest rate caps on retail installment loans received a rousing endorsement last week from the National Association of Loan Sharks, the preeminent trade association for illegal moneylenders.
Though an April Fools Day joke orchestrated by the American Financial Services Association, the April 1 press release reflects serious industry concerns that interest rate caps restrict financing opportunities for customers on the lower end of the credit spectrum at a vulnerable economic time.
The tongue-in-cheek release highlights how a slate of rate cap legislation could expand opportunities for the fake loan shark association s members.