Attorney General James Sues Trump Administration Over Rule That Would Allow Predatory Lenders to Target Vulnerable New Yorkers

Posted to Applied Web NY on Thu, 08/20/2020 - 14:30

NEW YORK – New York Attorney General Letitia James today filed the second lawsuit in the past month to stop the Trump Administration from giving predatory lenders the ability to take advantage of consumers by charging high interest rates on loans and bypassing state interest rate caps — or usury laws — that are already in place. Today’s lawsuit, filed against the Federal Deposit Insurance Corporation (FDIC), seeks to stop the agency’s attempts to help predatory lenders circumvent and evade New York’s vigorous consumer protection efforts, and follows a similar suit filed last month, against the Office of the Comptroller of the Currency (OCC). Attorney General James is today co-leading a coalition of eight attorneys general from around the nation in filing the suit, which seeks to stop a Trump Administration rule that would allow the federal government to preempt state usury laws and allow third-party entities to prey on vulnerable New Yorkers.

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