Groups Highly Oppose OCC Proposal that Would Avoid 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, nationwide Association for Latino Community Asset Builders, People in america for Financial Reform, Consumer Federation of America, Public Citizen, and U.S. PIRG, delivered a good message late yesterday up to a federal bank regulator, any office for the Comptroller and Currency (OCC), opposing a proposed guideline that could encourage rent-a-bank schemes that help loans of 100% APR or maybe more in states that prohibit high-cost loans and even mortgages as much as 138% that drive small company owners into foreclosure. The teams 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 beneath the nationwide Bank Act to authorize non-banks to charge usurious prices, and that the OCC has neglected to proceed with the demands of this 2010 Dodd-Frank Act before preempting state legislation. The remark additionally criticizes the agency for failing woefully to think about the dangers the proposal poses to customers and smaller businesses, specially those who find themselves economically susceptible. Also, the OCC has already been failing woefully to stop a rent-a-bank scheme by the OCC-supervised federal savings relationship, Axos Bank, which can be allowing predatory loans by World company Leaders. The remark states in part: