Newsroom
House votes to overturn OCC's harmful 'true lender' rule
The House Thursday approved a resolution to overturn the Office of the Comptroller of the Currency's (OCC) true lender rule using the Congressional Review Act (CRA).
Under the CRA, legislators can vote to overrule new federal regulations with a joint resolution of disapproval within 60 legislative days after regulators have submitted the rule to Congress. The true lender rule took effect in December 2020. On May 11, the Senate voted to overturn the OCC's true lender rule.
"NAFCU applauds the House of Representatives for voting to overturn the OCC’s anti-consumer true lender rule," said NAFCU President and CEO Dan Berger. "This rule has allowed banks to blur regulatory lines in partnership with high-cost online lenders to charge consumers interest rates of over 100 percent, evade consumer protection laws and usury caps, and promote payday lending schemes. Not only would this rule have threatened the COVID-19 economic recovery, but it would have severely harmed American consumers.
"NAFCU urges President Biden to quickly sign this measure and for Congress to advance legislation promoting better opportunities for those that need financial services, such as allowing community-based, not-for-profit credit unions to add underserved areas to their fields of membership."
Ahead of the House vote, NAFCU Vice President of Legislative Affairs Brad Thaler reiterated the association's concerns with the OCC's rule, arguing that it promotes predatory lending practices.
The true lender rule allowed banks and federal savings and loan companies to provide their charter to online lenders so they can deliver high-cost loans with annual rates over 100 percent, evading state consumer protections and usury caps and promoting predatory payday lending. Several states filed suits against the OCC to try to overturn the rule.
NAFCU raised its concerns about the rule – specifically noting Americans are struggling financially amid the coronavirus pandemic and the predatory rule would only harm them further – and also reiterated concerns with fintech companies taking advantage of chartering options and loopholes to evade proper oversight in the financial system.
NAFCU will continue to advocate for effective financial regulation that provides a level playing field for credit unions and proper consumer protections.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
Get daily updates.
Subscribe to NAFCU today.