Customer and Civil Rights Groups Urge Federal Banking Regulator to quit Rent-a-Bank Cash Advance Schemes

Customer and Civil Rights Groups Urge Federal Banking Regulator to quit Rent-a-Bank Cash Advance Schemes

Groups Highly Oppose OCC Proposal that Would Avoid State Rate Caps to permit High-Cost Predatory Loans

Washington, D.C. – The Center for Responsible Lending, nationwide customer Law Center, Leadership Conference on Civil and Human Rights, NAACP, nationwide Association for Latino Community Asset Builders, People in the us for Financial Reform, customer Federation of America, Public Citizen, and U.S. PIRG, delivered a very good message late yesterday up to a federal bank regulator, any office of the Comptroller and Currency (OCC), opposing a proposed guideline that will encourage rent-a-bank schemes that allow loans of 100% APR or maybe more in states that prohibit high-cost loans and even mortgages up to 138per cent that drive small company owners into property property foreclosure. The groups argued that it could be made by the proposal easier for non-bank lenders to launder cash through banking institutions and unleash a flood of predatory loans.

The 55-page remark states that the OCC does not have authority underneath the nationwide Bank Act to authorize non-banks to charge usurious prices, and that the OCC has did not stick to the demands regarding the 2010 Dodd-Frank Act before preempting state legislation. อ่านเพิ่มเติม “Customer and Civil Rights Groups Urge Federal Banking Regulator to quit Rent-a-Bank Cash Advance Schemes”