In a 52-47 vote last night, the U.S. Senate voted to overturn a Trump administration regulation that would allow predatory lenders to evade state interest rate laws by putting a bank’s name on the paperwork.
“The House must now move swiftly to join the Senate and prevent any more rent-a-bank schemes from taking root in the 45 states that cap or otherwise regulate interest rates,” said Linda Jun, senior policy counsel for Americans for Financial Reform.
Small business advocacy organizations, representing tens of thousands of affiliated small businesses and the interests of the 30 million small businesses in the country, submitted a letter to Congress expressing strong support for Senate Joint Resolution 15, the Congressional Review Act Resolution to repeal the Office of the Comptroller of the Currency’s True Lender Rule.
Legislation, proposed by Sens. Van Hollen and Brown along with Rep. Chuy Garcia of Illinois would rescind the Trump-era rule and reestablish states’ right to protect their residents with interest rate caps.
AFR joins 338 groups representing all 50 states and the District of Columbia called for Congress to support a resolution to overturn rule that fosters loans with triple-digit interest rates that evade state and voter-approved interest rate caps
AFR joined allies across the country to support the Congressional Review Act challenge to the OCC’s final rule, “National Banks and Federal Savings Associations as Lenders,” which would unleash predatory lending in all fifty states by preempting states’ interest rate caps.
A coalition of more than 100 organizations yesterday submitted a public comment in opposition to a proposed rule from the Office of the Comptroller of the Currency (OCC) that would make it easier for payday and other high-cost lenders to use banks as a fig leaf to offer predatory loans at interest rates of 100 percent APR or higher that are prohibited under state rate cap laws.
FDIC Chair Jelena McWilliams “is doing the bidding of loan sharks who have a decades-long history of trying to get around state consumer protection rules,” Americans for Financial Reform spokesperson Carter Dougherty observed. “And now a federal regulator is helping them do it.”