A tug of war is under way over a government plan to review the upper limit on interest rates that consumer finance firms and other nonbank moneylenders can levy.
Groups of lawyers representing people who owe money to consumer loan firms are demanding an upper limit that is lower than the current 29.2 percent a year. The consumer loan industry is countering with demands for a higher ceiling, or at that the status quo be kept in place.
"If the upper limit is cut again, we will not be able to lend money to people who desperately need to borrow," a consumer credit industry official said.