Last week, Appleseed Centers in Texas, Nebraska, and New Jersey submitted a joint comment letter to the US Comptroller of the Currency to speak out against a recently proposed rule. As the letter documents, the proposed rule would allow predatory lenders to escape rate cap laws, as well as liability for violations of federal and state consumer protection laws, by participating in “rent-a-bank” schemes. Borrowers can get trapped in these predatory loans, often paying extremely high interest rates and taking on more and more loans to extend the interest payments.
Please click here to read the letter from Texas, Nebraska, and New Jersey Appleseed, which was prepared with the pro bono assistance of Fish & Richardson P.C.
Appleseed Network Manager