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.
"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
