Attorney General Ellison condemns federal work to let predatory loan providers make use of customers

Attorney General Ellison condemns federal work to let predatory loan providers make use of customers

FDIC guideline allows payday as well as other predatory lenders to skirt state usury regulations; AG Ellison joins bipartisan coalition urging withdrawal of guideline they say violates law, administrative authority

try the web-site

February 6, 2020 (SAINT PAUL) — Minnesota Attorney General Ellison has accompanied a bipartisan coalition of 24 solicitors basic in opposing a proposition by the Federal Deposit Insurance Commission (FDIC) to preempt state usury laws and regulations that regulate payday along with other high-cost financing, therefore which makes it easier for predatory loan providers to benefit from customers. State usury regulations prevent predatory lenders from using customers by asking high rates of interest on loans. The FDIC’s proposed rule would allow predatory loan providers to circumvent state usury laws and regulations through “rent-a-bank” schemes, by which federally controlled banks work as loan providers in title just, thereby moving along their exemptions from state legislation to non-bank predatory and payday lenders. […]