Van Hollen, Senators Slam Regulators For ‘Rent-A-Bank’ Arrangement

Van Hollen, Senators Slam Regulators For ‘Rent-A-Bank’ Arrangement

Today, U.S. Senators Chris Van Hollen (D-MD), Sherrod Brown (D-OH), and four of these peers penned a page opposing a proposed guideline because of the workplace of this Comptroller associated with the Currency (OCC) and also the Federal Deposit Insurance Corporation (FDIC) that may eviscerate state guidelines that restrict the attention prices on loans and permit unregulated predatory financing throughout the nation.

In a letter to OCC Comptroller Joseph Otting and FDIC Chairman Jelena McWilliams, the Senators forced straight back resistant to the proposed guidelines, which will gut state legislation by motivating payday as well as other predatory lenders to utilize so-called “rent-a-bank” schemes to evade state laws and regulations capping the attention prices they are able to charge on loans. In rent-a-bank arrangements, the banking institutions nominally fund the mortgage, nevertheless the payday or non-bank loan providers do most of the work, organizing and gathering payments regarding the loans, and bearing all or the majority of associated with the economic danger. 继续阅读“Van Hollen, Senators Slam Regulators For ‘Rent-A-Bank’ Arrangement”