//Stop 100% APR Loans in Your State!

Stop 100% APR Loans in Your State!

shark payday loan

Tell your U.S. Representative and Senators to take action on two items in Washington, D.C. that could impact predatory lending in every state in the country! 

Email your members of Congress || Other actions you can take

First, tell your lawmakers to support and co-sponsor the Fair Credit Act, H.R. 5050 (Rep. Chuy Garcia) & S. 2833 (Sen. Merkley), which would extend to veterans and other consumers the 36% APR rate cap that currently protects active-duty servicemembers and their families.  The bill would apply to all lenders, including banks.  The Veterans and Consumers Fair Credit Act would not preempt states from imposing lower rate caps. The bill would eliminate the most egregious 100% to 400% payday loans and would stop high-cost online lenders from using rent-a-bank schemes to evade state interest rate caps.

The Veterans and Consumer Fair Credit Act (sponsored by Rep. Garcia and Sen. Merkley) was introduced in honor of Veteran’s Day and we need to show widespread support. 

Second, insist your representatives oppose the brand new “rent-a-bank” proposal from the FDIC and OCC that will embolden online lenders to charge up to 160% on installment loans in states where that is illegal by laundering their loans through banks.  Banks are not covered by state interest rate limits, and online lenders are increasingly using banks as a fig leaf to cover illegal loans. The Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC) just issued a proposed rule that would allow a bank to technically make a loan but sell it immediately to a high-cost lender that could charge usurious interest rates above what the state allows.

Contact your members of Congress NOW.

Tell your Senators and Representative to support the Veterans and Consumers Fair Credit Act and to stop rent-a-bank predatory lending!

Read NCLC’s issue brief  highlighting the use of rent-a-bank schemes to circumvent state interest rate caps.

 Other Actions You Can Take 

  • Talk to your members of Congress while they are home Thanksgiving week.
  • Call your members of Congress and insist that they tell you where they stand.  You can find out their numbers, and who your representative is, at Congress.gov (click on “Members”), or call the Capitol Switchboard at (202) 224-3121).
  • Tweet at them using #StoptheDebtTrap
  • Reach out to your state attorney general and payday loan regulator and urge them to oppose rent-a-bank lending.

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