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The federal funds rate, in turn, influences the cost of mortgages, car loans and other forms of consumer credit.
Other forms of consumer credit, including auto and student loans, climbed at a 6.9 percent rate, the biggest gain in at least seven years.
The only way to stamp out legal loan sharking is by establishing a lending rate cap to cover all forms of consumer credit in order to reduce prices in areas of the market that are not price-competitive.
The government should therefore take urgent action to put an end to high-cost predatory legal loan sharking for good and introduce lending caps to cover all forms of consumer credit.
This week's YouGov omnibus survey for Compass appeared to find overwhelming public support for a cap on interest rates as a solution: 68% of respondents believe there should be a lending rate cap to cover all forms of consumer credit, including the unsecured credit sector.
In 2010 Congress adopted the Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), which instituted banking regulations to prevent another financial crisis and created a Consumer Financial Protection Bureau, which was charged with regulating, among other things, subprime mortgage loans and other forms of consumer credit.
Similar(52)
Perhaps National Community's apparently contradictory position can be reconciled by saying that it is distinguishing between good debt to buy a home and bad debt in the form of consumer credit.
Created by Dodd-Frank in 2010, the CFPB was handed jurisdiction over just about every U.S. business that provides some form of consumer credit, but with little accountability to either Congress or the President.
Some 41 million Americans collectively carry more than $1.1 trillion in education loans owned or guaranteed by the Education Department, a total that surpasses every form of consumer credit in the U.S. except home mortgages.
Corporate lending and parts of consumer credit, such as credit cards and car loans, are wobbly.
It limits the cost of consumer credit to 36percentt.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com