Attorney General Ellison condemns effort that is federal let predatory lenders benefit from customers
FDIC guideline will allow payday as well as other predatory lenders to skirt state usury rules; AG Ellison joins bipartisan coalition urging withdrawal of guideline they say violates legislation, administrative authority
Minnesota Attorney General Ellison has accompanied a bipartisan coalition of 24 solicitors basic in opposing a proposition because of the Federal Deposit Insurance mission (FDIC) to preempt state usury laws and regulations that regulate payday along with other lending that is high-cost thus which makes it easier for predatory loan providers to make the most of consumers. State usury regulations prevent predatory lenders from using customers by billing high rates of interest on loans. The FDIC’s proposed guideline would enable predatory loan providers to circumvent state usury rules through “rent-a-bank” schemes, for which federally controlled banking institutions become loan providers in title just, thereby moving along their exemptions from state regulations to non-bank predatory and payday lenders.
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