President Biden signs NAFCU-backed resolution to overturn OCC’s harmful true lender rule

by NAFCU Newsroom

President Joe Biden Wednesday signed the resolution to overturn the Office of the Comptroller of the Currency’s (OCC) true lender rule using the Congressional Review Act (CRA).

“NAFCU applauds President Joe Biden for signing a resolution overturning the OCC’s anti-consumer true lender rule,” said NAFCU President and CEO Dan Berger. “Banks will no longer be allowed to blur regulatory lines in partnership with high-cost online lenders to charge consumers interest rates of over 100 percent, evade consumer protection laws and usury caps, and promote predatory payday lending schemes.

“Congress should now look to advance legislation promoting better opportunities for those that need financial services, such as allowing community-based, not-for-profit credit unions to add underserved areas to their fields of membership.”

NAFCU raised its concerns about the rule – specifically noting Americans are struggling financially amid the coronavirus pandemic and the predatory rule would only harm them further – and reiterated concerns with fintech companies taking advantage of chartering options and loopholes to evade proper oversight in the financial system. The House approved the resolution last week; the Senate voted to overturn the rule in May.

 

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