The so-called “rent-a-bank” formula where banks rent their name to lenders in an outside state to avoid consumer protection laws has been repealed by Congress, according to an Ethics & Religious Liberty Commission report.
The bipartisan Congressional Review Act passed in late June overturns the Office of the Comptroller of the Currency’s 2017 “True Lender” rule.
“The ERLC has long applauded states’ efforts to curtail unjust lending practices in their states,” according to an article by ERLC’s Brooke Kramer. “Currently, 19 states and the District of Columbia have 36% interest rate caps. We believe that these common sense consumer protection laws should be respected rather than undermined by federal regulation.”