Bernie Sanders and Alexandria Ocasio-Cortez Team Up To Fight Payday Lenders

>>Representative Alexandria Ocasio-Cortez
joined forces with Senator Bernie Sanders to come out with new legislation in regard
to loan sharks and payday lenders. Now this is an attempt to put an interest
rate cap on these loans, which is incredibly important, especially when you consider how
much these payday lenders charge in interest to consumers who are desperate to have some
cash on hand. The legislation proposes a 15% interest rate
cap on all consumer loans, which would reduce what many Americans pay on their credit cards
and effectively eliminate the payday loan industry. Now, the reason why it’s considered eliminating
the payday loan industry is because the payday loan industry charges interest rates that’s
not even close to 15%. And I’ll give you the numbers in a second. It includes language that would prevent lenders
from adding fees to evade the interest rate cap and sets penalties for violators, including
a forfeiture of all interest on the illegal loans. So look, there are some payday lenders who
charge interest rates up to 667%. How insane is that?>>Mm-hm.>>And so if that’s what you’re in the business
of doing, you would effectively be eliminated under this type of legislation.>>Right, so there’s a couple of different
reasons why I love this proposal. So, first of all, the interest rates are completely
out of control. We used to have laws against this for a long,
long time. In the beginning, it was based on biblical
law. So, hey Republicans, you should be in favor
of that, right? Of course not, they don’t care about the Bible. If it’s not controlling people’s lives, they’re
not interested. They’re like, Jesus is really well known for
loving the money changers. Really? I think you should maybe look into that. Anyway, so they spend all their time protecting
the bankers. But in the old days, going past things like
rates around 15% was considered immoral and you didn’t need to go past it. But if you do, and in this legislation they
do allow for financial emergencies for a period of 18 months where you could charge a little
bit more then 15%, so they built that in here. But the second reason that I love it is, it
challenges the Supreme Court ruling in 1978, Marquette National Bank versus First of Omaha
Service Corporation. So what is that? That’s the one that said if you’re dealing
with different state laws, and there’s usury caps, in other words caps on interest rates
in different states. Well, what applies, the home state or the
state that they’re actually transacting in? The Supreme Court ruled the home state. Now, why is that important? Well, what happened was Delaware and South
Dakota said, okay, then I’m not gonna have any restrictions on interest rates. So all of the banks moved, if not physically,
at least their corporate headquarters technically to those states, especially Delaware. And they said, okay, now I can charge any
interest rate I like. And no matter which state you’re in, since
my home state is Delaware, my law applies. And they basically destroyed the ability to
regulate any of these industries, especially the financial industry, all across the country. So this would challenge that. This would rein that back in and go, no, no,
no. You don’t get to cheat, you don’t get to put
a loophole in. This is gonna apply to everybody, and you’re
not gonna be able to charge people past 15%. Even if you’re not doing payday loans, they’re
600% interest rate, etc, which is crushing. You still have credit cards that go all the
way to the thirties in their interest rates, and those are nearly impossible to pay off. And it creates a cycle of poverty and dependence
on these financial companies, which is exactly what they want. And the government officials that they literally
legally bribe by giving them campaign donations, that’s what they want. But the problem is you can’t bribe Bernie
Sanders and you can’t bribe Alexandria Ocasio-Cortez. They don’t take corporate PAC money, sad day
for you. So all of a sudden, we’ve got people representing
us instead of the bankers. It shouldn’t seem like a miracle in a democracy. But unfortunately, in this day and age, it
is.>>So I’m gonna be a little critical of this. And their hearts are in the right place, and
they are among the only lawmakers who even give a damn about what is happening with these
loan sharks. So I wanna give them credit, but I also wanna
argue that it doesn’t go far enough. So they wanna cap the interest rate at 15%. But I would argue that they should cap the
interest rate, they should start off by saying they wanna cap the interest rate at 5%. Why do I make that point?>>Wow, no, I don’t agree.>>I know. Okay, well here’s why I say that. So, first off, let me just note that the proposal
would allow the Federal Reserve Board to increase the rate cap for a period of 18 months, but
only if there are adverse circumstances threatening the safety and soundness of the financial
system. So the Federal Reserve would have a little
bit of leeway if they can prove that, hey, this might not be so good for the financial
system. Now, I think the Federal Reserve has issues
of its own, but let’s just get that out of the way. But here’s the thing, current credit card
interest rates range between 15 and 23%, and are higher for branded department stores. But banks currently borrow from the Federal
Reserve at a skinny 2.5%. So look, here’s one of the things that we’re
seeing in our system right now. And Nomi Prins talks about this in her book
Collusion, where she talks about the central banks and what they’re doing with printing
money. So after the 2008 economic collapse, the Federal
Reserve is like, okay, we need to stimulate the economy. So why don’t we just go ahead and print money
and give it to these banks, almost for free, right, almost no interest rate? And they will loan this money out to small
businesses and Americans, and help stimulate the economy. Except that is not what they did. A lot of times, they would use that cheap
money and invest in their own stocks, and do corporate stock buybacks. And they would just make themselves rich. But if they’re getting this cheap money from
the Federal Reserve, why do they get to charge? I would argue hey, 5% is double, it’s double
what you had to pay for interest, right?>>No, because then they won’t lend to people
who are more of a credit risk. That’s a reality. If they think they’re not gonna make back
5% on their money, they just simply will not lend to those people.>>No, no, I get that, I get that. But my point is, don’t go to the negotiating
table at 15%, go to the negotiating table at 5%.>>No, honestly, they wouldn’t be taken seriously. It’s too low, okay? So I mean, I like your aggressive attitude.>>It’s just->>But I don’t agree.>>I wanna be aggressive.>>Okay, I hear you, I hear you, so-
>>And by the way, they’re not taken seriously right now anyway.>>No, but these are great proposals. And they’re taken seriously by the American
people, and that’s why they’re so popular. And so I want you to understand, they also
have an alternative for people who couldn’t get money from current financial institutions
even at 15%. They’d like to bring back banking through
the post offices. And we actually had that system in this country
for a long, long time and it worked fairly effectively. That’s why the bankers bribed the politicians
to kill it. And so that is public banking. There’s 31,000 post offices across the country
and you could do it through that. I’d be super curious to see, to the point
that Anna and I just discussed, what is an effective interest rate? Because if the post offices are doing it,
you will get to actually see without the greed that comes from the private bankers, what
is an interest rate at which you actually lose money? So maybe you could bring it down to 5%, and
even with big credit risks, still make money and have it be sustainable. But we’re not gonna find out if you just trust
the private bankers to do it.>>Right.>>And here, look, this is an option. It’s not like they’re saying we’re gonna end
the private banks. No, they’re saying you can have private banks,
you can charge 15%. But we would also start banking from the post
offices and see if that’s a better option. And if they can’t make it sustainable, then
it won’t work.>>Yeah, and I have to make one more point. Look, the Federal Reserve making interest
rates incredibly low when it comes to borrowing, it might sound like it’s great. All right, we get to borrow money at a lower
interest rate, but it’s actually not great. Because the fact of the matter is, it pushes
this trend of borrowing as opposed to saving. Because remember, if the interest rates are
higher, you’re more likely to deposit money. You’re more likely to save your money and
the banks will pay you a higher interest rate on that savings account. But right now, we have incredibly low interest
rates when it comes to those savings accounts, unless you go to Aspiration Bank, cuz Aspiration
will give you 2% interest on your savings.>>Yeah.>>That is insane,>>They’re technically not a bank, but they
are a financial institution, yes. Last two things super quick, Delaware abuses
so much that one of their senators named Joe Biden was known as the senator from MBNA,
which was one of the banks back then. So that’s the absurd situation we’re in. And finally, Alexandria Ocasio-Cortez had
this great line where she said today’s loan sharks wear expensive suits and work on Wall
Street. It’s true. The opioid industry, the Oxycontin, all that,
the pharmaceutical companies, they legalized drugs. That’s actually opium that they sell. But they put people in expensive suits to
sell it and bought off the politicians. And the same exact thing happened with the
loan sharks. We should go back to making it illegal.

100 comments on “Bernie Sanders and Alexandria Ocasio-Cortez Team Up To Fight Payday Lenders”

  1. Jay Goldstein says:

    AOC and Bernie are literally two of the biggest badasses in politics right now.

  2. mehdy huss says:

    There is no democracy, you think Bernie will stand a chance. Watch how they will take him down, but first they’ll let him do his show. USA is completely in the hands of giant corporations and the military industrial complex. These people only care about maximizing profits. And maximizing profits will only happen through implementation of evil plans to cheat and deceit people. Banks drag people down with high interests and predatory lenders are everywhere. You’ll most likely to see them in poorer areas examples( speedy cash title loan money tree and others). Banks and Financial institutions feed off of people’s ignorance, thus rendering them homeless. Bribery is happening everywhere and the numbers of unemployment are misleading. They know most people won’t bother and basically who has time for someone who ended up poor. You have to first be rich and raise a lot of money.

  3. Aaron Wantuck says:

    It costs money to be poor today.

  4. emerald3331 says:

    And of course you don't see Republicans doing anything to help consumers or workers.

  5. Patrick Eatmon says:

    It's not going to happen, what Bernie, and AOC need to do is take names on votes against this legisation, and let it be known come election time.
    Get the corporate politicians out of Washington.

    Always go to negotiation in your favor. Cenk is full of it on this.

  6. fly goat says:

    Only TYT viewers and dumb enough to use a payday loan

  7. Jamie Ward says:

    Idc what side of politics your on no cure economics based on loop ,n loops broke money don't flow the complete loop,capitalism won't work.Over production,monoplys,wages,living costs,helping foriegn countries all hefty burdens,example if u help a country with farming and they thrive not only do you lose a customer u gain a competitor n gain somebody wanna sell u what u have too much.Taking away money from industrious private sector another mistake loss of money flow critical.

  8. Michael Katt says:

    It sound like Cenk gets it, people taking out pay day loans are higher credit risks so the choices are, having paid day loans or not having paid day loans. If nothing else the lenders should be forced to fully disclose the true interest and compounding period of their loans ie the Effective APR over at least  a 1 year period then maybe people will think twice before taking one of these loans, if nothing else it will stress the fact that they need to pay if off fast.

  9. advocatus diaboli says:

    How about people stop being stupid and taking out irresponsible loans.

  10. rebecca woodbury says:

    I agree there should be a law limiting the amount of interest banks can charge. Having said that I hope people understand that people with bad credit will not get lower rates. Their cards will be canceled.

  11. MalcolmRandall says:

    Bernie and AOC go together like Optimus and Bumblebee.

  12. Robert Kuchinov says:

    Is Ana high??

  13. The Young Turks says:

    Let's take a moment for all the commenters who would rather blame poor families looking to make ends meet, rather than all the CORRUPT PREDATORY LENDERS and the CORRUPT PREDATORY POLITICIANS who enable them….

  14. just me says:

    It's the dumber and dumbest show! Aoc and Sanders

  15. just me says:

    How about make a budget a stay in it. And part of the budget should be emergency funds. In case something comes up .

  16. alpha sow says:

    Cenk you got it all wrong pricking on small lenders. What about the giant wall st banks who wouldn't even consider these borrowers creditworthy. To me this is basic economics if you have no credit, you live paycheck to paycheck and you have a high risk of default on your debt naturally your interest rate will rise. Liberals always have great intentions smh.

  17. Brian Chivis says:

    You know our corrupt congress will not let this happen.

  18. Cthulhu Christ says:

    Some people just need to experience… forced empathy through direct instruction via an abstraction of the financial threat manifested in physical form. Put me on the jury, 667% is more than enough for me to consider it an imminent threat to safety. Self defense plain and simple.

  19. Bryan Madrigal says:

    Let's comprise at 10% cap

  20. Project Tomorrow says:

    4:35 agree with Ana . cap interest rate at 5% for payday and credit cards. but for home mortgage we should not use compound interest. i have a plan explained in my furure videos for home buying.

  21. Project Tomorrow says:

    5:20 Ana is right . wny do banks borrow from fed res at 2.5% and then charge us 15% – 23% . banks are run by low IQ talentless uncreative leeches . banks=butt pirates

  22. Project Tomorrow says:

    6:25 sorry Cenk the credit score/risk is a farce (i worked at car dealership briefly). credit score is a tool to charge more and get more profit. 5% would be a new reality for them to face. they can get out of the business and be replaced by better type of bank accepting 5% . Cenk I'm talking real change.

  23. Jason Jason says:

    Don't let this distract you from the fact that Bernie is senile and AOC is a moron.

  24. Th Cann says:

    Stop mansplaining, Chunk Yogurt

  25. acceptjesusorburn says:

    Barren and childless, 32yo Ana, thinks loans should be free money with no interest.

  26. Nicholas Raynes says:

    I really like Ana's agressiveness on this issue. Keep going Ana.

  27. annoyed707 says:

    Come on, Bernie, AOC, all we really need is Doug Ford's buck-a-beer. (sarcastic smirk)

  28. JoAnn Holmes says:

    These guys are just criminals. They hook people in who have a sick kid and then the person can NEVER catch up! Criminals.

  29. advocatus diaboli says:

    The left: free stuff here!
    Bad credit? We'll fix it!
    Unwilling to work? We'll pay you cash!
    Take out irresponsible college loans? Poof! They're gone!
    Reparations? You got it!
    Vote today!

  30. annoyed707 says:

    Meanwhile, in Ontario, Canada, before D.F, a large national payday loan outfit was banned from making new loans because of illegally high rates of interest on 'other financial products', etc. and went bankrupt, to be eventually swallowed by Money Mart.

  31. Greg B says:

    Interest rate ceilings have a tendency of restricting access to credit and pushing people to even worse loan sharks, not lowering interest costs

  32. Greg B says:

    Post Office banking to provide low interest loans to those of higher credit risk…what could go wrong? Jesus, do we learn nothing

  33. Mark Cross says:

    The Delaware scam has been going on for decades.
    I think yacht registrations have fake residency there too!

  34. Darien Guy says:

    Love AOC and Bernie. Bernie for President, AOC for VP 2020!!!

  35. fosterchild4523 says:

    And if payday loans are your only source of a much needed loan, who is going to loan money to you if they disappear?……NOBODY.

  36. abbreviation of time says:

    Tyt should do a story on PA State Rep Brian Sims harassing little girls and paying 100 dollars to anyone who will dox them.

  37. red brown says:

    Why do news media keep calling her that long legal name on her birth certificate? She has been known as, received paychecks and signed her name "SANDY," all her life. Her family, friends, neighbors, teachers, employers all called her "SANDY, " all her life! Her all of a sudden using a long legal birth certificate name is just part of the hustle, to create a fraudulent "Image." This is right in line with how Elisabeth Holmes created a fraudulent image, even going so far as to change her voice. To fall for her deception and help to perpetuate it is a fools game. CALL HER SANDY!

  38. Sean Wilson says:

    so, can Bernie win and bring in AOC as his VP? Is she of age for that?

  39. Mike C says:

    Now that I can get behind

  40. PASCAL CANADA says:

    Speaking of Bernie, he will not get the nomination for president in 2020; he is wasting his time. He's too old. He better start searching for nursing home.

  41. onaga2574 says:

    US bank used to offer like 10% interest payday loans if you had direct deposit don't know why they stopped barrow a $100 payback $110 that's a fair fee

  42. Floppy Bunny says:

    Even if you lowered the interest rate to 0.00% it wouldn't solve anything. People utilizing payday loans is simply a symptom of larger financial problems in their lives.

  43. Levi Simonton says:

    Nobody is forcing you to accept high interest rates.

  44. Levi Simonton says:

    Then dont get a credit card!! Guaranteed the people complaining about not being able to pay off there debts, still have smart phones and cable packages.

  45. Jason Bequette says:

    How are payday lenders bad? Oh because they prey on dumb broke people? Well it sounds like the left is just competing for that market.

  46. A A says:

    Why would any bank extend unsecured credit card debt to consumers at 5% if treasuries can return 3% or even more in the past?Plus high interest rate by the fed have other effects other than giving people more return for their savings, millions of middle class will see their mortgage payments increase.

  47. Mission Failed says:

    Saving accounts are terrible place for money. Even at %2 interest. you are loosing %1 to inflation. that dose not sound like a deal to me….why shilling for a bank?

  48. Llukka78 says:

    Most important detail other then banks get loans almost interest free and lend and 30%, is in a crisis banks rates goes to zero and their credit amounts eased aka quantitative easing , individuals has to pay exorbitant rates when they are in a bad financial situation. That is evil

  49. Karl Satherley says:

    In Japan, I have an interest rate of under 1% which will go up to 1.5% in 10 years on my 30 year mortgage. Inflation here is negligible. Why do interest rates in the states need to be so high?

  50. pewpew says:

    Aspiration bank relies off pay day lending

  51. Guitarontheflipside says:

    No more than 15%? Let’s ask Biden about that idea?? 🤔🤔

  52. coryluke12 says:

    Payday loans are just fine if they are used correctly. Pay them off on your next payday or don’t use them at all.

  53. kaiser sosay says:

    Here's a idea, dont spend what you dont got dumb turks

  54. logan king says:

    Alexandria Ocasio Cortez and Bernie Sanders are evil tyrannical idiots and know absolutely f**** nothing.

    F**** try me I dare you

  55. eric moss says:

    If those fuckers can charge ~20% for a bank credit card, they can damn well start paying me 5% on a savings account.

  56. DAY LITE says:

    to hell with the banks, instead of the government only getting 2% from banks they should give credit cards to every adult American with a credit line equal to 1 year of their income with a 10% interest rate backed up by their taxes making it just about impossible to default on the loans

  57. Alvin Lozada says:

    Sanders for 2020 and he will win and you will cry ha ha if you don’t make $10 million then you should be for this man you big dummy’s

  58. Norm Haletty says:

    AOC said facts are secondary when someone is as moral as she is, to Anderson Cooper, which shows she is a moralistic preacher like nearly all "progressives" and no different to an Evangelical, but she uses arrogance, self-deception, and conceit, to justify her beliefs, instead of an ancient book.

  59. Franklin Wiliams says:

    HMMMM…..why don't we just get rid of the banks? make a public bank. 2.5% for EVERYONE! Post Office Banks NOW

  60. F P says:

    The saddest thing is that AOC isn't old enough for Bernie to select her for VP. They are a great team.

  61. Scott Price says:

    When I was in college, every semester there would be banks offering credit cards. The banks want to get college students in debt and keep them in debt the rest of their lives.
    I refuse to get a credit card. I use a bank debit card. I only spend money I have in the bank.

  62. DobyxRC says:

    There is an easier fix here rather then bringing religion into it…. Don’t spend casual money you don’t have unless you can it back in 30 days.

  63. dubtat says:

    Who gives a shit? Neither Bernie or AOC have accomplished anything.

  64. Oiled Up And Ready ! says:

    Wow you people are dumb and dishonest!!
    These lenders exist because the major mega banks won't lend credit to the types of customers you are referring to!… Small lending institutions naturally have higher interest rates!! …

  65. Buttered Lumps says:

    A lazy communist and a pinhead.

  66. Nick Furious says:

    U guys make me sad. I love how these people from tyt can debate and disagree with each other- showing that they're not committed to a particular rhetoric

  67. blaktek says:

    In my country (France), the postal service is also a banking institution, an internet service provider (~23€/mo), a mobile phone service provider (~4€/mo).
    US citizens would find it useful ; as a government service has the obligation to reach everyone and make close to no profit.

  68. Mike Bracco says:

    ana your so hot but your arnt putting your money in thatlow interest nonsnse…

  69. Lester Brunt says:

    You Americans realize this is not a problem in Europe? And not because of “muh sozialismm” but because in Europe it is seen as retarded to have a credit card. Why do you mericans think you need a credit card? What is wrong with debit cards? Why do you need the middle man charging you interest? Just take out the middle man and use your own funds directly.

  70. ODZY CHRIS says:

    “600%” interest is NOT “crushing” it is LOAN SHARKING!

  71. P MM says:

    I agree with you Anna, 5%

  72. whiteindianone says:

    a blabbering incoherent crazy mind. he spoke about BANKS. not payday loan companies. get it right. don't spin and protect him.

  73. One Hung low says:

    The borrower is now the victim. Great show tyt.

  74. CC Ryder says:

    Hmmm payday lenders usually have mafia ties, kinda like teamsters and who do they vote for, LOl the Democrats LOl , thanks TYT forgiving us the news.

  75. litchy lichen says:

    max 5%.

  76. John Appleseed says:

    No coincidence that Wilmington Delaware is both “Corporate Capital of the World” and “Murdertown USA”

  77. S Webb says:

    I disagree with doing away with payday lenders. Heres why. Some folks dont have access to credit cards, reg bank loans and nobody they know has money to loan them. Let's rause the minimum wage first. Get affordable healthcare/Rx first. So, payday loans arent needed. When I used them I was grateful they were there. 600% interest rates and all. I was in a crisis with no where else to turn.

  78. D ES says:

    Hashtag ad

  79. John Sanders says:

    Think about these internet quick loans. Your bill can be $560.00 a month on a $3000 loan. Your principal payment is $60 … the remaining payment in interest is $500 a month. It's Predatory lending.. loan sharks ..thanks to money paid by special interest to our politicians. Do the math $6000 in interest payments on a $3000 loan. ONLY $720 going to the principal payment on the $3000 loan. THIS is legal and a great example of Capitalism for the people making money and putting the working poor further in a financial hole.

  80. j h says:


  81. Good Fella says:

    Why would anyone think you have the right to dictate someone else's business? Can't afford the interest? Don't accept the loan

  82. Fendernirvana says:

    So, garbage disposals not included?

  83. DanG's Tube says:

    Love, love, LOVE this!!!

  84. DanG's Tube says:

    There used to be laws against usury, banks would offer loans at reasonable rates….
    Back when America was a better country.
    You could actually buy a home for 15k….
    and only one spouse had to work, at just one job for 40 hours a week.
    Now it's all about making a few people billionaires and the rest can just suck it.

  85. christopher hall says:

    Like how Cenk glosses over them being able to charge more on interest for people at their most desperate time (Ana just stay's quite). Isn't that the mine reason people go to payday lenders?

  86. Huib Wetzel says:

    ANA IS RIGHT , asof Cenk isnt so (most) often !

  87. Thors Pinky says:

    With their powers combined they make…..full blown R-Tard.

  88. RTussenIO says:

    You can’t bribe Bernie Sanders!

    If he really wants some extra money, all he has to do is write another book.

  89. David Nemeth says:

    Bernie is so full of shit ! But not quite as full of shit as Cenk.

  90. David Nemeth says:

    Cenk can suck Bernies Kielbasa.

  91. Feddi Guaps says:

    I agree with her 5% was reasonable

  92. gwheyduke says:

    Love your show HATE that moving background please stop

  93. Russell Smith says:

    Dumb and dumber. It still won’t stop the SNAP benefits for cash and heroin trade. And what impact is going to have on actual postal services? Takes 20 minutes to stand in line and buy a book of stamps. Would that now increase to 45 minutes with postal workers attempting bank transactions?

  94. Luca says:

    Just an old rich white guy and a stupid puerto rican

  95. WinterWolf216 says:

    Ana: Totally agree with you. 5% is more than enough considering all they’ve stolen from us for decades.

  96. mark price says:

    Bernie and AOC should both wear" I"m with stupid" T-shirts with arrows pointing to the other. What a dream team.

  97. AwesomeBlackDude says:

    well here's something else that Trump is not going to fix… utilizing ratio or better known as credit card hopping that needs to be demolished and revamped.

    Dropping our excellent fico scores (they need to remove s8 to s9) from purchasing an big ticket loan item by down grading us @30% to 40% to classify us as in a new credit score brackets is a Effing joke.

  98. Lobos222 says:

    5%!?! That is like inflation. You wont make money that way. However how banks get "easy money" should be regulated so they cant speculate in themselves. That they make money on helping local investors is NOT the issue. Its not the banking concept there is an issue with, but the current system.

  99. T Mo says:

    WHY STOP THERE A.T .M. Machines Should
    Only CHARGE 50 Cent Per Transaction.
    IF You USE an A. T. M. at A CASINO HOTEL They Charge $6.99 a POP.

  100. dreamreal756 says:

    JC tried to get rid of Usury and look what they did to him! (-;

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