Customer and Civil Rights Groups Urge Federal Banking Regulator to end Rent-a-Bank Cash Advance Schemes

Customer and Civil Rights Groups Urge Federal Banking Regulator to end Rent-a-Bank Cash Advance Schemes Groups Highly Oppose OCC Proposal that Would Avoid State Speed Caps to permit High-Cost Predatory Loans Washington, D.C. – The Center for Responsible Lending, National customer Law Center, Leadership Conference on Civil and Human Rights, NAACP, nationwide Association for Latino Community Asset Builders, People in america for Financial Reform, customer Federation of America, Public Citizen, and U.S. PIRG, delivered a message that is strong yesterday to a federal bank regulator, any office for the Comptroller and Currency (OCC), opposing a proposed guideline that could encourage rent-a-bank schemes that permit loans of 100% APR or more in states that prohibit high-cost loans and even mortgages as much as 138per cent that drive business owners into property property foreclosure. The teams argued that the proposition will make it easier for non-bank lenders to launder cash through banking institutions and unleash a flood of predatory loans. (more…)...
Read More