Senate Dems Press for Targeted Interest-Rate Caps
Senate Banking today held a hearing on new legislation (S. 2508) from Sen. Reed (D-RI) extending the Military Lending Act (MLA) interest-rate cap to certain consumer financial products to all consumers. Although it seems clear that Chairman Brown intends to mark up the bill, he will need to make some changes to the bill despite generally-strong Democratic support given the Republican opposition today. For example, Sen Tester (D-MT) worried about the bill’s impact on Native American sovereignty and Sen. Cortez Masto (D-NV) questioned the credit-union exemption. Sen Warren (D-MA) also wants to preempt rates for small businesses, expanding the bill in ways that further complicate near-term Senate action should she stand firm on this proposal.