Tell your Representative and Senators to support the bi-partisan Veterans and Consumers Fair Credit Act (VCFCA) (H.R.5974/S.2508), introduced in the U.S. House of Representatives by Rep. Jesus “Chuy” Garcia (D-IL) and Rep. Glenn Grothman (R-WI) and in the U.S. Senate by Sen. Jack Reed (D-RI) and Sen. Sherrod Brown (D-OH). The VCFCA extends the Military Lending Act’s 36% interest rate cap to all consumers, including veterans and Gold Star Families.
The 36% interest rate cap goes back over 100 years and has stood the test of time. The VCFCA covers all types of lenders, including banks, and would eliminate high-cost, predatory payday loans, auto-title loans, and similar forms of toxic credit across the nation by:
– Establishing a simple, common sense limit on interest rates;
In states where interest rate caps have been approved, consumers have consistently been better off, finding safer alternatives to payday and other predatory loans. The 36% rate cap also prevents predatory lenders from evading state laws through “rent-a-bank schemes” and other dishonest tactics, discourages debt-trap short-term loans, and incentivizes responsible underwriting.
Contact your Members NOW
Tell your Representative and Senators to support the Veterans and Consumers Fair Credit Act and to stop rent-a-bank predatory lending!
Read an issue brief on how the fake lender rule protects rent-a-bank schemes that circumvent state interest rate caps.
Review NCLC’s Rent-a-Bank Watch list to see which lenders are evading your state’s interest rate cap limit.
- Sign our petition to the FDIC urging it to stop banks from fronting for predatory lenders.
- Urge your state Attorney General to take action to oppose rent-a-bank lending.
- Talk to your members of Congress.
- Call your members of Congress and insist that they tell you where they stand. Find contact information for your Representative or call the Capitol Switchboard at (202) 224-3121).
- Tweet at them using #RentaBank #StoptheDebtTrap
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