Urge Congress to Support a Congressional Review Act Resolution to Overturn the OCC's "Fake Lender" RuleDear friends and allies,
Congress has a short window of time to pass a resolution under the Congressional Review Act to invalidate the Office of the Comptroller of the Currency’s (OCC’s) "fake lender” rule. The fake-lender rule enables predatory consumer and small business lenders charging 179% APR or more to evade state- and voter-approved interest rate caps.
ACT NOW! Email your senators and representative to ask them to support the resolution (S.J. Res. 15 or H.J. Res. 35) to overturn the OCC's "fake lender" rule.
The rushed “fake lender” took effect in December and protects “rent-a-bank” schemes whereby predatory lenders (the true lender) launder their loans through a few rogue banks (the fake lender), in order to claim that it is a “bank loan” exempt from state interest rate caps. The fake lender rule overrides 200 years worth of caselaw allowing courts to see through usury evasions to the truth, and replaces it with a pro-evasion rule that looks only at the fine print on the loan agreement.
Congress can use the Congressional Review Act to overturn the rule with only a simple majority vote in the Senate -- no filibuster. But the deadline is approaching, so Congress must act soon.
Please also urge your members of Congress to support the Veterans and Consumers Fair Credit Act, which would stop predatory cost rent-a-bank loans by extending to all lenders, including banks, the 36% APR rate cap that currently protects active duty servicemembers.
Tell Congress to overturn the OCC's "fake lender" rule!
Thank you!
Lauren Saunders
Associate Director
National Consumer Law Center
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