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Broad Coalition Calls for Congress to Rescind “Fake Lender” Rule that Facilitates Predatory Loan Schemes

March 22, 2021
Payday and Other Small Dollar Loans
Payday Loans
Letters to Congress
The coalition of signatories to the letter consists of 325 groups, including civil rights, community, consumer, faith, housing, labor, legal services, senior rights, small business, student lending, and veterans organizations. The letter states that “[t]he rule replaces the longstanding ‘true lender’ anti-evasion doctrine with a ‘fake lender’ rule that allows lenders charging rates of 179% or higher to evade state and voter-approved interest rate caps merely by putting a bank’s name on the paperwork – just as payday lenders were doing in the early 2000s.”