Attorney General James Fights Trump Administration Proposal Allowing Predatory Lenders to Take Advantage of New York's Most Vulnerable Communities

Posted to Applied Web NY on Fri, 09/04/2020 - 12:37

NEW YORK – As part of her ongoing efforts to protect New York consumers from federal regulatory overreach, New York Attorney General Letitia James has co-led a coalition of 24 attorneys general in objecting to a proposed Trump Administration rule that would undermine New York’s efforts to prevent predatory lenders from taking advantage of the states’ most vulnerable consumers. The proposed rule would enable predatory lenders to charge high interest rates on loans and bypass state interest rate caps — or usury laws — already in place, and is part of a systematic, coordinated assault on state usury laws. In a comment letter submitted to the Office of the Comptroller of the Currency (OCC), Attorney General James and the coalition urge the OCC to rescind 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 for the express purpose of enabling payday lenders and other non-banks to conspicuously evade state consumer protection laws.

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