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Republicans press Otting on 'solution' for fintechs post-Madden

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Washington, September 23, 2019 | comments
House Republicans are calling on Comptroller of the Currency Joseph Otting to come up with an administrative workaround to a 2015 court decision that complicated the business model of online lenders.
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From PoliticoPro:

"House Republicans are calling on Comptroller of the Currency Joseph Otting to come up with an administrative workaround to a 2015 court decision that complicated the business model of online lenders.

In a letter to Otting, every Republican on the House Financial Services Committee told Otting that "administrative solutions" to ease the consequences of the Madden v. Midland Funding case are "available and achievable."

At issue for the lawmakers is the ability of non-bank online lenders to acquire loans from federally chartered banks. The 2015 2nd Circuit Court of Appeals ruling created new hurdles for that model by finding that the transactions did not preempt state usury laws.

In the letter led by Financial Services ranking member Patrick McHenry (R-N.C.) and Ted Budd (R-N.C.) , the lawmakers said the OCC has the authority to update its interpretation of the definition of interest under the National Bank Act "to ensure that our nation's policies governing usury laws are applied on a clear, consistent basis nationwide." READ MORE
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