Economic historians have documented that usury laws -- or caps on allowable interest rates -- have existed since pre-biblical times. Unfortunately, over the last 30 years or so, federal, and most state, usury ceilings had been eliminated through a series of wrong-headed court and Congressional actions. In 2006, we were successful in passing a law, the Military Lending Act, reinstating usury ceilings at 36% APR for loans to military personnel. Last week, Senator Dick Durbin (D-IL) introduced legislation, S. 500, to extend that protection to loans to all Americans. Here's the important part-- we're not just talking about predatory payday lenders, rent to own stores and their ilk. The limit would apply to credit cards and shameful bounce-overdraft protection loans made by banks. While 36% APR may sound higher than most credit card rates, the bill limits would apply to their punitive fees as well, which have the effect of triple-digit interest.

Here is a copy of the support letter from 100 organizations, including U.S. PIRG. Also, Rep. Jackie Speier (D-CA) is expected to file a companion bill this week.