Published: September 2017

Bills make high cost, predatory lending easier

Groups oppose bills that make it easier for payday lenders and other nonbanks to use rent-a- bank arrangements to ignore state interest rate caps and make high-rate loans.

Consumer Action joined 151 national and state organizations write in strong opposition to HR 3299 (McHenry) and S 1642 (Warner), the Protecting Consumers’ Access to Credit Act of 2017. The advocates say that the sole purpose of these companion bills is to enable nonbank lenders to use bank partnerships to override state interest rate limits. The bill poses a serious risk of enabling predatory lending and unsafe lending practices. Unaffordable loans have devastating consequences for borrowers—trapping them in a cycle of unaffordable payments and leading to harms such as greater delinquency on other bills. 

Lead Organization

Center for Responsible Lending, National Consumer Law Center

Other Organizations

Too numerous to list. Please download letter below.

Download PDF

Bills make high cost, predatory lending easier   (Madden_Letter.pdf)

 

Tags/Keywords

credit, access to credit

 

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