Rent-a-Bank Loans

High-cost lenders often launder their loans through banks to attempt to evade state interest rate limits. NCLC fights the use of rent-a-bank schemes and other evasions, such as misuse of tribal sovereign immunity, by predatory lenders.

High-Cost Rent-a-Bank Loan Watch List

March 27, 2022

At least 45 states and the District of Columbia (DC) cap rates on at least some installment loans. But high-cost lenders are increasingly using rent-a-bank schemes with a small number of rogue banks, which are not subject to state interest rate limits, to evade state rate caps on installment loans and lines of credit.

Read More about: High-Cost Rent-a-Bank Loan Watch List

From the NCLC Digital Library

Consumer Credit Regulation

Innovative thinking and precise authority on predatory lending and other consumer credit, including the latest on rent-a-bank attempts to evade state usury laws, on the NCLC Digital Library.

Read Chapter One

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