Actually, I'd just like to see all borrowers -- sub-prime or prime -- get the same interest rates. It's always seemed unjust and regressive that those with the most difficulty repaying a loan are asked to pay more.
Here in New England, where winter is cold and a lot of employment is seasonal, people often have to borrow to pay the heating bill. People who really need the money pay through the nose. Those who want to borrow money for more frivolous purposes get a good deal. It doesn't make sense. Why not charge the same rate? The idea of a high rate is to cover those who default but the high rates increase the chance of defaulting.
Where are the bible-thumpers when you need them? The biblical injunction against usury (Deuteronomy 23:19) was taken to forbid all loaning at interest in the middle ages. That's the meaning in the Koran as well. As late as 1745 Pope Benedict XIV decreed that charging interest was usury
,and thus a sin. Not until 1830 was charging interest made lawful in Europe, under the Napoleonic code. Officially, the Catholic prohibition still stands, but it is not enforced.
Some modern American Baptists are beginning to consider the question. Dr. Bruce Prescott
has a religious radio show and blog. He also is Chair of the Norman OK chapter of Americans United for Separation of Church and State, so he's not quite as off- the-wall as some.
As usual, I'm being long-winded, and this isn't my blog, so I'll shut up now...