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NAFCU urges House leaders to support efforts to overturn harmful true lender rule
NAFCU’s Brad Thaler Monday wrote to House Speaker Nancy Pelosi, D-Calif., and House Minority Leader Kevin McCarthy, R-Calif., along with all House members, to call for support of a resolution to overturn the Office of the Comptroller of the Currency's (OCC) true lender rule using the Congressional Review Act (CRA). Last month, the Senate voted in favor of repealing the rule.
The true lender rule – which took effect December 2020 – allows banks and federal savings and loan companies to provide their charter to online lenders so they can deliver high-cost loans with annual rates over 100 percent, evading state consumer protections and usury caps and promoting predatory lending. Several states have filed suit against the OCC to try to overturn the rule.
“At a time when low-income consumers can least afford it, the OCC’s rule is enabling high-cost lenders to prey on consumers that are on even more precarious financial footing, which could threaten COVID-19 economic recovery efforts and the good work of consumer-friendly financial institutions like credit unions,” wrote Thaler. “We urge you to support and pass S.J.Res.15 to overturn the True Lender rule and stop this harmful practice.”
As policymakers focus on ensuring all Americans have access to financial services, Thaler also recommended allowing all credit unions to add underserved areas to their fields of membership, which would provide consumers with options for lower cost and safer financial products.
NAFCU will continue to advocate for effective financial regulation that ensures proper consumer protections and provides a level playing field for credit unions.