Reinvestment Partners presented these remarks into the workplace of this Comptroller regarding the Currency together with Federal Deposit Insurance Corporation responding for their approval that is joint to their user banking institutions to make use of their charters to evade state anti-usury legislation. The proposition, if authorized, will allow banking institutions to ignore state laws and regulations that place ceilings on interest levels. New york features a strong state guideline that caps rates of interest at 30 %. Beneath the “Rent-a-Bank” model, because it was described, banking institutions could mate with payday loan providers to provide loans with interest levels in excess of 200 per cent.
Reinvestment Partners presented this remark towards the workplace regarding the Comptroller for the Currency on agency’s proposition to generate a special-purpose nationwide charter for fintech businesses.
In crafting this remark, Reinvestment Partners partnered aided by the Maryland customer Rights Coalition to convey our typical issues this charter could eviscerate the strong state customer security regulations that are already in position within our particular states. Continue reading “We advocate for customers against high-cost finance anywhere it crops up. See several of our work below.”