February 3rd, 2009

Dark Simpsons Anne

Do You Believe in Usury?

Poll #1343192 Usury should (or should not) be defined...

Do you believe a certain rate of interest on loans to be excessive?

Never thought about it
2(3.2%)
Maybe
1(1.6%)
No
3(4.8%)
Do you mean sinful?
1(1.6%)
Yes
36(58.1%)
Oh, yeah, high rates of interest suck
11(17.7%)
Indeed! I shall strike down the usurer in his sleep!
8(12.9%)

At what range do interest rates charged on borrowed funds start to seem exessive to you?

0-1%
1(1.7%)
2-5%
0(0.0%)
6-10%
9(15.5%)
11-15%
25(43.1%)
16-20%
13(22.4%)
21-25%
8(13.8%)
26-30%
1(1.7%)
31-40%
1(1.7%)
41-50%
0(0.0%)
Over 50%
0(0.0%)

Do you think governments should have usery laws defining specific limits as to what interest can be charged?

No
4(6.5%)
Yes
44(71.0%)
It Depends
14(22.6%)
Ticky box!
0(0.0%)

Do you think the interest limits on interpersonal loans and on lending institutions should be different?

No, they should be the same
20(33.9%)
Yes, individuals should have greater freedom in making personal loans than lending institutions
27(45.8%)
Yes, chartered lending institutions should have more freedom in making loans than individuals
1(1.7%)
How is that again?
11(18.6%)

Do you know if a certain interest rate is illegal where you live?

No, I don't know
45(71.4%)
Yes, my state maintains an interest rate cap for person-to-person loans
0(0.0%)
Yes, there are state and/or federal limits on interest rates for all people and institutions to prevent loan sharks from abusing the unwary
3(4.8%)
Yes, the federal government proscribes criminal levels of interest, defined in relation to the state limit on interest
0(0.0%)
As far as I know, there are no usury laws in effect where I live
4(6.3%)
Usury laws are complicated and vary depending on whether you are an individual, a state-chartered lending institution, or a national lending institution
1(1.6%)
There are state limits, but any nationally chartered bank is only required to follow the law of its home state
0(0.0%)
The "Depository Institutions Deregulation and Monetary Control Act" of 1980 exempted federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits and effectively undermined most usery laws
2(3.2%)
Brian and Anne

oops, guess that poll question range was too wide, not specific enough

For those who answered (some form of) Yes, a certain loan interest rate seems excessively high, the majority responded that "too high " starts between 5 and 25 %, and I'd like to see a breakdown on that. Please answer this question too!

Poll #1343223 follow-up question

At what interest rate for loans do you start to feel the rate has gotten excessively high?

Mean: 13.15 Median: 12 Std. Dev 3.94
5
1(1.9%)
7
2(3.8%)
9
8(15.4%)
11
15(28.8%)
13
4(7.7%)
15
10(19.2%)
17
5(9.6%)
19
3(5.8%)
21
4(7.7%)
23
0(0.0%)
25
0(0.0%)