Big Legislative Wins for Consumers

The National Consumer Law Center (NCLC) is highlighting some big wins for consumers thanks to recent actions in Congress.

Here’s more:

In a close but ultimately bipartisan vote, the U.S. Senate last week voted to overturn a regulation issued in the waning days of the Trump Administration that would allow predatory lenders to make loans with exorbitant interest rates approaching or exceeding 200% in states that prohibit such loans. The “fake lender” rule allows non-bank lenders to ignore state interest rate limits as long as a federally-chartered bank’s name is on the paperwork. The rule threatens to pave the way for a massive expansion of predatory lending in all 50 states.

The Senate’s passage of S.J. Res. 15, a resolution introduced by Senators Chris Van Hollen (D-MD) and Sherrod Brown (D-OH) to overturn the Office of the Comptroller of the Currency’s (OCC) “fake lender” rule under the Congressional Review Act (CRA), is a major victory for consumers — but our work to overturn this anti-consumer rule is not yet done. The U.S. House of Representatives must pass the resolution and send it to the President for his signature. Rep. Jesus “Chuy” García has introduced a parallel resolution, H.J. Res. 35, in the House.

NCLC and our coalition partners are redoubling our efforts to ensure that the House moves to curb the “rent-a-bank” schemes allowed by this rule in the 45 states that cap or otherwise regulate interest rates. NCLC Associate Director Lauren Saunders, who is leading…