PROVIDING FOR CONGRESSIONAL DISAPPROVAL UNDER CHAPTER 8 OF TITLE 5, UNITED STATES CODE, OF THE RULE SUBMITTED BY THE OFFICE OF THE COMPTROLLER OF CURRENCY RELATING TO ``NATIONAL BANKS AND FEDERAL...
Richard J. Durbin (Democrat, IL) \u2014 2021-5-11

I come to the floor today in support of the Congressional Review Act resolution to rescind the Office of the Comptroller of the Currency's ``True Lender Rule.'' This rule was rushed through by the previous administration with complete disregard to the harm it would cause already struggling working Americans. prgtoken The true lender rule undercuts important consumer protections at the State level and greenlights high-cost ``rent-a-bank'' schemes. These schemes let predatory lenders evade State interest rate caps by funneling high-interest loans--loans that are illegal under State law-- -through national banks. prgtoken We know these lenders prey upon those struggling to make ends meet and are more likely to operate in areas with higher concentrations of poverty. And they offer complicated loans that are designed to trap consumers in an endless cycle of debilitating debt. prgtoken What is especially troubling is that this rule was finalized in November of prgtoken last year at a time when so many were reeling from an unprecedented public health and economic crisis. And while so many American families struggle to put food on the table and make their rent or mortgage payments, the OCC's rule makes it easier for predatory lenders to prey on those most vulnerable, exacerbating the economic hardship of millions. prgtoken Currently, 45 States and the District of Columbia have instituted interest rate caps on installment loans to protect consumers. Earlier this year, my home State of Illinois passed into law a 36-percent cap on interest rates for consumer loans. These protections are essential to ensuring that hard-working Americans are not exploited. prgtoken The true lender rule would allow predatory lenders to evade these important State-level consumer protections. Twenty-five State attorneys general, including Illinois Attorney General Kwame Raoul, recently wrote to me and my colleagues to underscore the dangers of the OCC's true lending rule. They say in their letter, ``The OCC's Rule would be exploited by lenders seeking to circumvent these state interest-rate caps and invite, indeed welcome, predatory consumer-lending partnerships . . .'' prgtoken I agree with the concerns raised by Attorney General Raoul and his counterparts. The Federal Government should be doing more to protect the financial security of Americans, not less. prgtoken Congress needs to take action--now more than ever--to protect working families from predatory lending practices. We must rescind this harmful true lender rule. However, addressing the harm of this rule is not enough. More must be done to protect vulnerable American consumers. For more than a decade, I have pushed for a Federal interest rate cap of 36 percent on all consumer loans. This standard is not radical or new. The Federal Government already affords similar protections to military servicemembers and their families. We should expand those protections to all Ameri