In 1995, the NJ banking commissioner requested the lifeline preemption be rescinded. Subsequently, OCC filed a Federal Register notice requesting comments, as required by the 1994 Act, but, to our knowledge, has done nothing since to comply with Congressional intent. Despite clear language in the Electronic Funds Transfer Act that allows states to regulate the fees charged for ATM use, the OCC has been active in two states, Iowa and Connecticut, seeking to subvert those states' ATM surcharge bans. While OCC has not yet written a direct preemption determination under EFTA, its aggressive actions in federal and state courts have aided and abetted national banks seeking to overturn these pro-consumer laws. That letter is attached.
Many states prohibit usurious payday lenders from operating within their borders.
To get around state usury laws, small loan interest rate caps, or bans on loans made by check cashers, companies are partnering with national banks to make payday loans. These banks claim the right to export home-state deregulated interest and loan fees across the country without regard for state law. The use of national bank charters by payday lenders to evade state consumer protections is a growing trend that should merit the attention of the Senate Banking Committee as well as the Comptroller. These rulemakings are quite significant. In our view, the OCC ought to be looking for ways to prevent usury, not condone it.