Big Legislative Wins for Consumers

Andy Spears
3 min readMay 21, 2021

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 NCLC’s efforts to overturn the “fake lender” rule (as well as many other forms of predatory lending), notes that “the OCC fake lender rule… is doing active harm right now, defending a predatory business model that destroys small businesses, homes, and lives.” She urged the House to act quickly to begin the process of repealing the rule. “Small businesses and families devastated by COVID, especially in Black and Brown communities, cannot wait.”

And on Debt Collection:

The U.S. House of Representatives passed the Comprehensive Debt Collection Improvement Act (HR 2547), which contains provisions that will protect vulnerable consumers from abusive debt collection practices and bring much-needed clarity to debt collection rules.

Prior to the COVID-19 pandemic, more than 68 million adults in the U.S. had one or more debts in collection on their credit reports. Consumer debt has continued to grow during…

Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .