One of several major modifications Bolkcom proposed ended up being an interest-rate cap that would limit pay day loan interest up to a 36 % APR, a big change other states around the world have actually relocated ahead with. Bolkcom additionally noticed that pay day loan borrowers should be supplied with “new payment choices” to have borrowers off of “the financial obligation treadmill machine” that many who move to payday advances are on. Bolkcom additionally suggested that banking institutions and credit unions provide more credit choices to borrowers that are low-income their state.
Bolkcom thinks the lending that is payday purposefully targets low-income residents, claiming lenders have actually “made millions” through predatory targeting practices, and deliberately is designed to “rip-off” and exploit “low-income working and senior Iowans. ” Bolkcom urged visitors to communicate with their regional state senators and representatives to convey worries that working Americans are being exploited by loan providers, and thinks that vocal residents would be the path that is only alter as “no one cares about the issue” within the Iowa statehouse.