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Dangers of National Rate Cap Highlighted During House Financial Services Committee Hearing

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Washington, February 6, 2020 | comments
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.
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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

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