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Consumer Reports urges OCC to rescind proposition that will encourage “rent-a-bank” lending schemes

Consumer Reports urges OCC to rescind proposition that will encourage “rent-a-bank” lending schemes

OCC proposal undermines state efforts to guard consumers from predatory lenders

WASHINGTON, D.C. – A proposal because of the workplace of this Comptroller associated with the Currency (OCC) will make it easier for predatory loan providers to evade state regulations restricting rates of interest by partnering with nationwide banking institutions, relating to Consumer Reports. In a page submitted to your OCC today, CR called in the federal regulator to protect customers from high-cost loans by rescinding the proposition.

“With countless Americans out of work and struggling to cover their bills, the very last thing the OCC ought to be doing is making it simpler for shady loan providers to charge excessive interest prices,” said Antonio Carrejo, policy counsel for Consumer Reports. “Unfortunately, the OCC’s proposal would enable lenders that are predatory ‘rent-a-bank’ that is not at the mercy of state consumer security guidelines to get away with peddling high-priced loans that trap borrowers with debt.”