Groups Highly Oppose OCC Proposal that Would Bypass State Speed 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, National Association for Latino Community Asset Builders, Americans for Financial Reform, customer Federation of America, Public Citizen, and U.S. PIRG, delivered a message that is strong yesterday up to a federal bank regulator, any office associated with Comptroller and Currency (OCC), opposing a proposed guideline that would encourage rent-a-bank schemes that permit 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 teams argued that the proposition might make it 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 neglected to stick to the requirements for the 2010 Dodd-Frank Act before preempting state legislation. Continue reading