From the American Financial Services Association:
“Yesterday, February 5th, AFSA staff attended the House Financial Services Committee’s first of two hearings entitled, ‘Rent-A-Bank Schemes and New Debt Traps: Assessing Efforts to Evade State Consumer Protections and Interest Rate Caps.’ The second is scheduled for February 26th.
The purpose of the hearing was to examine the need for a national rate cap on consumer loans (specifically, H.R. 5050’s 36% all-in rate cap) to protect consumers against ‘rent-a-banks’ and payday lenders. Witnesses included consumer advocates, the sponsor of California’s “Fair Access to Credit Act”, and a research fellow from the Mercatus Center. READ MORE