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5% per annum cap on all interest rates & charges

5% per annum cap on all interest rates & charges

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This petition has been created by Noel H. and may not represent the views of the Avaaz community.
Noel H.
started this petition to
Your MP or Senator,
Governor of the Bank of England
Loan Sharks lock families, individuals and whole nations such as Greece, into un-payable debt; distressing families and ultimately making them homeless. But even low waged people can repay and escape debt if the charges are fair; eliminating bad-debts for lenders and reducing court cases, bailiffs and aggressive debt-collections.

Charges from 1950 to 1990 were typically on a Base of 7.5%, quoted as "2.5% to 6% above Base" or a maximum of twice-times Base Rate; and banks made good profits.

Lenders can now borrow at Base Rate, e.g. in the UK at 0.5% (half a percent). They lend on mortgages at about 5% or 10 times Base; on credit cards at 16% or 32 times; which increases to 30% or 60 times; pay-day loans are 300% to 3000% or 600 to 6,000 times Base Rate.

Loan charges are sandwiched and levelled at every stage of business – about 20 steps from raw materials through to consumer purchase. Capping the rate to 5% would reduce the costs at each step and final prices by 25%; beating inflation.

Only banks or the super-rich can buy money at 0.5% and sell it at up 6,000 times the cost. It is a privilege reserved for the 1% against the 99%. All the world’s religions and fair minded people are against such exploitation. The charges are now horribly greedy and excessive.

Ask your MP or representative to press for a national and global 5% per annum cap on interest and charges. Capping interest and charges is the most powerful and simplest action to liberate people from grinding debt; and it will boost the economy from the grass-roots upwards, creating huge sustainable wealth.