CU, Banking Trade Groups Fighting 36% Loan Interest Rate Cap Legislation

Credit union and banking trade groups are asking Congress to ignore proposals to impose a 36% fee and interest cap on loans made by financial institutions.

“The proposed 36% fee and interest cap would make it more difficult for many consumers to obtain credit, thereby harming the very consumers the legislation seeks to protect. Congress should reject these legislative measures,” the groups, including the Credit Union National Association, the National Association of Federally-Insured Credit Unions, the American Bankers Association and the Independent Community Bankers of America, wrote, in a letter to the Senate Banking Committee.

House to Vote on ‘Rent-A-Bank’ Rule Repeal

The House next week will consider a resolution that would rescind a Trump Administration rule by the Office of the Comptroller of the Currency that credit union trade groups contend allows predatory online lenders to “rent” a bank to evade consumer protection laws. “In order to rein in predatory lenders and ‘rent-a-bank’ schemes, S.J. Res. 15 would overturn a rule by the Office of the Comptroller of the Currency and allow states once again to regulate these lenders and protect consumers,” House Majority Leader Steny Hoyer (D-Md.) wrote in a letter to colleagues outlining the June House agenda. Republicans have

Financial Trade Groups: Biden Plan to Close ‘Tax Gap’ Would Pose Huge Burden on Credit Unions, Banks

A Biden Administration proposal to require banks and credit unions to report information on customer account “flows” would create a huge burden for those institutions, financial service trade groups, including the Credit Union National Association and the National Association of Federally-Insured Credit Unions, told the Senate Finance Committee’s Taxation and IRS Oversight Subcommittee this week.

CU Trade Groups Support Democratic Effort to Repeal OCC ‘Rent-a-Bank’ Rule

Credit union trade groups are throwing their support behind a congressional effort to rescind a Trump Administration rule they contend allows predatory online lenders to “rent” a bank to evade consumer protection laws.

The Office of the Comptroller of the Currency adopted the rule in the last administration and the Senate may soon consider a resolution that would kill it.