Limit loan rates to a set percentage over the cost of money for banks. For example, 2 or 3 percent. Banks make a fair profit and borrowers don't get raw deals. It could even be 2 percent for good credit people and 3 percent for medium credit. Poor credit risks don't get loans.
In addition, all outstanding loans as of (for example) Dec 31, 2011 automatically get adjusted to the higher (e.g. 3% plus cost of money) level as a one time shot.
Lower rates than the cap would be acceptable for a bank to negociate to get a customer.
This regulation would only apply to US customers spending the money in the US.
This is historical material “frozen in time”. The website is no longer updated and links to external websites and some internal pages may not work.
