In fact, farmers are victims of high usury rates
, lack of government subsidy, costly farm inputs and low prices of their products.
Jerry Jaramillo, supervisor of savings and loans and trusts for the Utah Department of Financial Institutions, says the state has been regulating payday lenders since 1999, but "the legislature's position is that it is up to the individual to decide if that loan, at that interest rate, is in the best judgment of the borrower." He adds that usury rates in Utah are market driven and based upon "whatever people are willing to pay."
While other states have put caps on the usury rates (according to Jaramillo, the cap is 36 percent in New York), Gibson says it would be impossible for a payday lender to operate in Utah with a cap of 36 percent because the business model is built around processing microloans for short periods of time, usually a week to two weeks.
"One effort tried to cap the state's states usury rate at 500 percent, but no one [in the legislature] would touch it.
First Omaha Service Corp., (36) the Supreme Court held that a usury ceiling at the issuing bank lender's location applied to all consumer loans, thus providing the credit card lenders the opportunity to locate their operations in states with the most favorable usury rates
. (37) Accordingly, states began competitively reducing individual usury rates
in order to maintain in-state lending institutions, a race that resulted in the deregulation of the lending market.
If the bill had reached the floor, a heated floor fight would likely have resulted over whether to pass the measure, which effectively would eliminate so-called payday and title loan lenders--businesses that suddenly flooded the state after 1999, when New Hampshire became the only one in northern New England to lift usury rates
[??] The purpose of this article is to highlight not only the harmful effects of usury rates as we know them, but also the equally negative impact of what I call "enhanced" or "stealth" usury laws.
Italy's usury rate is updated every three months in a formula that essentially imposes a rate no higher than 1.5 times the previous quarter's average.
About 20 class actions filed nationwide in the last decade have alleged that the annual interest rates on those loans violated usury rates
, sometimes reaching a lofty 100 percent on loans that may have been outstanding for only a few days.
South Dakota's Bill Janklow has reduced hazardous waste reporting requirements for corporations and allowed credit card companies that locate in his state to set high usury rates
while paying no state corporate tax.