WASHINGTON, D.C. – The U.S. Senate has begun consideration of legislation (S.J. Res. 15) to rescind a federal bank agency rule that facilitates predatory lending. A vote is expected around 5:30 pm et. The rule, issued by the Office of the Comptroller of the Currency (OCC), makes it easier for lenders to charge high interest rates, in violation of state usury laws, through “rent-a-bank” schemes.
“The OCC rule promotes illegal, predatory lending that traps financially vulnerable families in debt,” said Center for Responsible Lending Director of State Policy Lisa Stifler, who recently testified on the topic before the Senate. “These high-interest loans pull people down into an economic quicksand where they can lose their bank account, their small business, their car, or their home. This rule should be eliminated. Congress can do that right now by voting for S.J. Res. 15.”
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