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In the winter of 2016, Missy Juliette, now 36 and of St. Paul, Minn., had to choose between paying the rent and settling overdue heating and electric bills. Her credit cards were maxed out, and her wages were being garnished for back taxes. Getting a small loan from a bank wasn’t an option, nor was borrowing from family. “I’d asked them for money before and couldn’t face the humiliation of it,” she says.
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By Ken Sweet
NEW YORK (AP) — Congress on Thursday overturned a set of regulations enacted in the final days of the Trump administration that effectively allowed payday lenders to avoid state laws capping interest rates. By Michael Calhoun, President of the Center for Responsible Lending A recent rule by the Office of the Comptroller of the Currency (OCC), a federal bank regulator, threatens to upend the rights and responsibilities between banks and their nonbank lender partners, displacing state regulators and subjecting consumers to predatory loans. The U.S. Senate has already, with a bipartisan vote, passed legislation to rescind the rule, using a mechanism called the Congressional Review Act (CRA). The House of Representatives is scheduled to vote on the measure this week to do the same, which would then send the legislation to the President’s desk for final approval. Passing this measure is needed to protect consumers and to preserve long-standing precedent permitting states to enforce their laws.
By: Nick Bourke, Gabriel Kravitz & Linlin Liang
Hawaii just enacted significant legislation to reform the state’s small-dollar loan market and prohibit balloon-payment payday loans. House Bill 1192 garnered unanimous support in the State Legislature, and Gov. David Ige (D) signed it into law June 16. By Megan Leonhardt The heads of major U.S. banks on Wednesday expressed tentative support for a federal interest rate cap on consumer loans, which would likely include payday and auto title loans.
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