Congressman García Testifies Before Senate Banking Committee
WASHINGTON, DC.- Congressman Jesús “Chuy” García (IL-04), a member of the House Financial Services Committee, released the following statement today after testifying before the Senate Committee on Banking, Housing, and Urban Affairs at a hearing entitled “Protecting Americans from Debt Traps by Extending the Military's 36% Interest Rate Cap to Everyone.”
Congressmen García and Glenn Grothman (WI-06) introduced the Veterans and Consumers Fair Credit Act in the 116th Congress. This bill would extend small dollar “payday” and car-title 36% rate cap protections established under the Military Lending Act (MLA) to all consumers, including veterans and their families. The proposal will better protect consumers, particularly working-class families and military personnel, from certain predatory lending practices. A Senate companion bill was introduced this week by Senators Jack Reed (D-RI), Sherrod Brown (D-OH), Jeff Merkley (D-OR), and Chris Van Hollen (D-MD). Congressmen García and Grothman will reintroduce their bill in the 117th Congress.
A video clip of the Congressman’s remarks can be found here.
“Predatory lenders target working class, immigrant communities like mine with high-interest loans that trap families in debt and make economic recovery impossible. Families take out loans with double or triple-digit interest rates to pay for the necessities of life, and they quickly find themselves in a cycle of debt they can’t repay. It’s time for a national standard that protects consumers across the country from getting trapped by mountains of debt
“I’m very proud that in my state of Illinois, Governor Pritzker signed an interest rate cap bill into law, and other states, including Arkansas, Nebraska and South Dakota have taken comparable steps to protect their residents. This has been a key priority for my constituents as well as consumer advocates, civil rights leaders, and religious organizations. But only Congress can set a national standard to cap interest rates and protect our communities from suffocating debt. It’s time to act.”
Congressman’s García’s full remarks as delivered can be found here.