OCC proposal undermines state efforts to safeguard consumers from predatory lenders
WASHINGTON, D.C. вЂ“ A proposal because of the Office of this Comptroller associated with Currency (OCC) would ensure it is easier for predatory loan providers to evade state rules interest that is limiting by partnering with nationwide banking institutions, according to customer Reports. In a page submitted to your OCC today, CR called in the regulator that is federal protect customers from high-cost loans by rescinding the proposition.
The last thing the OCC should be doing is making it easier for shady lenders to charge exorbitant interest rates,вЂќ said Antonio Carrejo, policy counsel for Consumer ReportsвЂњWith so many Americans out of work and struggling to pay their bills. вЂњUnfortunately, the OCCвЂ™s proposal would allow lenders that are predatory вЂrent-a-bankвЂ™ that isnвЂ™t at the mercy of state consumer protection regulations and acquire away with peddling high-priced loans that trap borrowers with debt.вЂќ
Rent-a-bank financing schemes typically include partnerships between a nationwide bank and a non-bank lender advertising pay day loans, car name loans, or car installment loans.