Democratic lawmakers in the US to file a decision to roll back the OCC's true lender law
The Congressional review bill's decision to roll back the measure comes after a coalition of liberal advocates asked lawmakers to do so before the deadline approaches to repeal rules introduced by regulators under the previous administration. And, according to Democrats, attorneys, and advocates, it could encourage predatory lending.
In October 2020, the Office of the Comptroller of the Currency issued the rule hoping to clarify the party regulatory regime that would apply when banks partnered with non-banks to make loans.
But Democrats argue that it would allow predatory lenders to circumvent the state's consumer protection and usury laws by partnering with banks whose federal regulations loosened state rules.
25 March 2021