These feedback reflected common themes, including assertions that: (1) the OCC does not have authority to adopt the Proposed Rule; (2) the Proposed Rule would deprive states of authority to manage non-bank loan providers; (3) the Proposed Rule would rise above the preemption authority issued by the NBA; (4) the Proposed Rule is “arbitrary and capricious”; (5) the Proposed Rule’s use procedure violates the APA; (6) the Proposed Rule would support lending that is Illinois payday loans predatory “rent-a-bank” schemes and as a consequence will be bad for customers and small enterprises; and (7) the Proposed Rule may have an anti-competitive influence on other state-licensed non-bank lenders. Many opinions advocated for jobs beyond the range associated with Proposed Rule, proposing that the OCC follow nationwide customer financing rate caps at 21per cent or 36%, or asking the OCC to previously reconsider the adopted Madden-fix rule.
A comment that is 78-page the rule jointly submitted by the Center for Responsible Lending, the nationwide customer Law Center and lots of other people makes a number of the exact exact same points these groups initially built in opposing the OCC’s Madden-fix rule. Likewise, an opposing comment submitted by Professor Adam Levitin restates lots of the exact same arguments manufactured in their early in the day discuss the OCC’s Madden-fix Rule.
Unsurprisingly, the newest York Department of Financial solutions, which will be taking part in legal actions attacking the OCC and FDIC Madden-fix rules, additionally presented a remark opposing the Proposed Rule, saying the guideline would sanction that is“rent-a-charter and will allow unregulated nonbank loan providers to “exploit the bank’s ability to issue loans without regard to state usury caps” and “launder loans through banks being an end-run around consumer-protective state usury limitations.” The comment features a litigation that is not-so-veiled: “If the OCC functions away from range of the authority and finalizes this rule, NYDFS will need all appropriate actions essential to protect customers and small enterprises in brand New York.”
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