To: House of Commons

London
SW1A 0AA

To: Rt Hon Greg Clark MP, Minister for Business, Energy and Industrial Strategy.
Regarding: Excessive Interest Payments.

Monday, 04 June 2018

I am a freelance macroeconomist. I develop new tools and policies, with the intention of
providing efficiencies to enable the free market to prosper. I communicate with many
government ministers, political groups and economic institutions to achieve progress.

I have enclosed an article putting forward the concept of a 'Satisfied Principal Order', which
is intended to cap debt interest payments if the original borrowing and a 'reasonable' amount
of interest have been paid. Stopping excessive interest payments should free the economy.

The objective is to provide a simple process a Judge can follow and make a ruling to prevent
private sector debts rolling on and on, after the principal loan has been satisfied. This should
reduce the financial burden on borrowers and in turn liberate the struggling economy.

As the economy is currently inhibited and private sector debt is increasing it might be worth
introducing the 'Satisfied Principal Order'. It should be popular with the changing tide of
public opinion, which is seeking economic recovery and stronger financial freedoms.

Kind Regards.

Peter James Rhys Morgan.

PJR Morgan: Website: morganisteconomics.blogspot.com

Copyright © Peter James Rhys Morgan 2018.
Keeping Interest Rates Under Control - A Satisfied Principal Order?

With private sector debt increasing by 7% in the last five years, new measures need to be
introduced to stop borrowers from being ripped off. One of the main problems is excessive
interest, which sometimes surpasses a fair rate of return. In many cases the principal loan has
been repaid with interest on top, but the debt continues heavily burdening borrowers.

Is it time for a Post Principal Debt Resolution? When the principal loan has been repaid, but
the remaining repayment exists in the form of interest accrued throughout the term of the
loan. In this case, all debt left over is interest, the repayments have exceeded the original
borrowing and the principal has been repaid to full satisfaction, zero loss for the lender.

There must be a limit on the amount a lender can charge a borrower, if the principal loan has
been repaid. Any repayments after principal satisfaction has been made must have structured
boundaries, to not burden borrowers too excessively or even extortionately. A Satisfied
Principal Order, 'SPO', a Court ruled debt closure, capping excessive interest payments.

Should the law change so when principal satisfaction has occurred debt on the remaining
interest is dissolved or erased, if it surpasses a certain percentage of the principal investment,
interest ceiling, or where the remaining interest debt has been held for over a certain period of
time, duration ceiling, such as six months or two years. Erasing the ongoing debt obligation.

Stopping further repayments and ending the debt by implementing an interest ceiling may not
be appropriate as it could stop high risk, high interest, loans, which may be needed for short
term undesirable lending. Useful for emergency lending. A repayment duration ceiling after
principal satisfaction has occurred, providing lenders with a reasonable return, may be better.

Another option is a duration ceiling after the principal and a basic rate of interest have been
repaid. For example if the principal amount plus twenty percent of its value on top have been
satisfied, further loan repayments can only continue for another six months. The lender will
receive an appropriate rate of return, which is now capped preventing excessive interest.

When the criteria has been reached the Satisfied Principal Order can be ruled, making it
illegal for debts to keep rolling on and on. Legislation or regulation, covering excessive
interest charges, may already exist. However there needs to be a Court Order, Judges can
implement by performing a simple calculation, allowing a quick and efficient legal process.

Charging excessive interest on loans, where the lender has received their money back and
more but is still charging interest, is unacceptable! There has to be a limit preventing debts
perpetuating on interest! It is too expensive for the borrower and damaging for the economy!
Erasing excessive debts will reduce the heavy burden on borrowers and free the economy!

Published at Morganist Economics.

By Peter Morgan.
19:25 08/01/2018.

PJR Morgan: Website: morganisteconomics.blogspot.com

Copyright © Peter James Rhys Morgan 2018.