Protecting Consumers' Access to Credit Act of 2017

Floor Speech

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Mr. EMMER. Mr. Speaker, I thank the chairman for yielding me time.

Mr. Speaker, I rise today to support another bill which builds on the good work of the House Financial Services Committee.

The Protecting Consumers' Access to Credit Act takes an important step to provide certainty through our financial system and to support consumers.

A 2015 court decision that we have heard other speakers talk about today, Madden v. Midland, is making it difficult for online lenders to offer businesses the funds they need to grow and succeed.

In Madden, the court held that, while the National Bank Act allows a federally chartered bank to charge interest under the laws of its home State on loans it makes nationwide, nonbanks that acquire these loans may not be able to maintain the same rate of interest since nonbanks are subject to limits of the borrower's State.

At a time when lenders are eager to help consumers and businesses gain access to capital, Congress needs to step in to check this misguided ruling.

When a federally chartered bank originates the interest on a loan, that interest rate should remain consistent.

Representative McHenry's legislation provides that fix by codifying the legal doctrine of valid when made.

Further, it helps community banks and credit unions access secondary markets they need to generate liquidity while also enabling new and emerging financial technology innovators to find easier ways for consumers and businesses to access credit and capital.

Mr. Speaker, I appreciate the hard work of my colleague, our chief deputy whip, on this important legislation. I encourage all of the Members of this body to support the Protecting Consumers' Access to Credit Act.

We must fix the misguided Madden ruling and take another step forward in supporting consumers, financial innovation, and our lenders that serve as the backbone of Main Street America.

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