AG James Pushes Back On Proposal Allowing Predatory Lenders To Take Advantage Of New York's Most Vulnerable Communities

Posted to Applied Web NY on Wed, 01/22/2020 - 14:37

New York – New York Attorney General Letitia James today led a bipartisan coalition of attorneys general that included the attorneys general of California, Illinois, and 19 other states to object to a proposed rule that would undermine New York’s efforts to prevent predatory lenders from taking advantage of consumers by charging high interest rates on loans and bypassing state caps — or usury laws — already in place. In a comment letter submitted to the Office of the Comptroller of the Currency (OCC), the coalition of attorneys general urge the OCC to reject the proposed rule that would enable predatory lenders to circumvent these caps through “rent-a-bank” schemes — arrangements in which heavily regulated national banks act as lenders in name only and enter into sham partnerships with unregulated entities so that they can receive exemptions that allow them to issue loans at interest rates that exceed state caps.

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