Attorney General Ellison condemns effort that is federal let predatory loan providers benefit from customers

January 7, 2021 No comments yet

Attorney General Ellison condemns effort that is federal let predatory loan providers benefit from customers

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

Minnesota Attorney General Ellison has joined a bipartisan coalition of 24 solicitors general in opposing a proposition by the Federal Deposit Insurance Commission (FDIC) to preempt state usury rules that regulate payday as well as other high-cost lending, thus rendering it easier for predatory loan providers to make use of customers. State usury laws and regulations prevent predatory lenders from taking advantage of customers by billing high interest levels on loans. The FDIC’s proposed guideline would allow predatory loan providers to circumvent state usury regulations through “rent-a-bank” schemes, by which federally controlled banking institutions work as loan providers in title just, thereby moving along their exemptions from state legislation to predatory that is non-bank payday lenders.

“Once once more, the government that is federal Trump management really wants to allow it to be easier for predatory loan providers to make use of Minnesotans and also make it harder to allow them to manage their lives. It’s a fundamental concept of financial fairness that customers shouldn’t be scammed, but again and again, the Trump management is showing that that is exactly how they want the economy to the office. I did son’t get elected the People’s Lawyer to stay straight back and let that happen,” Attorney General Ellison stated.

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