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Senate Hearing Shows Bank Rule That Helps Predatory Lending May Soon Be Nixed By Congress

Wednesday, April 28, 2021
Lisa Stifler

Video highlights, below, on the harms of predatory rent-a-bank schemes

WASHINGTON, D.C. – Today, the U.S. Senate Committee on Banking, Housing, and Urban Development held a hearing, “The Reemergence of Rent-a-Bank?,” focused on legislation to rescind a bank regulator rule that facilitates this predatory lending scheme. The regulation, issued by the Office of the Comptroller of the Currency (OCC), can be eliminated through a legislative tool that prevents the possibility of a Senate filibuster, but that action must be taken before an upcoming deadline in May.

Video highlights of the hearing:

CRL Director of State Policy Lisa Stifler said, "Simply put, this rule facilitates loans illegal under state law – not just any loans but ones reaching 200 and 300% APR. That’s the decision here – siding with illegal lending practices or standing up against them. We urge Congress to stand up against them and repeal the OCC’s rule."

Text of Ms. Stifler’s written and oral testimony, as well as video of the entire hearing, are linked here.

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Press Contact: carol.parish@responsiblelending.org