The House Financial Services Committee considered testimony from witnesses on
legislation that would implement an annual percentage rate cap for
certain consumer loans.
"The Veterans and Consumers Fair Credit Act," H.R. 5050, would implement a usury APR cap for
certain consumer loans (e.g., payday loans and car-title
loans). Specifically, the bill would (i) extend the current
36-percent cap protections to all consumers, including veterans and
their families, and (ii) create penalties unique to cap violations,
and allow for civil court and state Attorneys General enforcement,
without "preempt[ing] stricter state laws."
Rent-a-Bank
The Committee also considered testimony on predatory
"rent-a-bank" schemes as further detailed in the House
Staff Committee Memorandum. As previously covered, in late 2019, the OCC and
FDIC proposed rules (see here and here) that would amend regulations concerning
interest rates banks may charge their customers and clarifying the
effect
