Providing for Congressional Disapproval Under Chapter 8 of Title United States Code, of the Rule Submitted By the Office of the Comptroller of Currency Relating to ``National Banks and Federal Savings Associations As Lenders''

Floor Speech

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Mr. DURBIN. Mr. President, I come to the floor today in support of the Congressional Review Act resolution to rescind the Office of the Comptroller of the Currency's ``True Lender Rule.'' This rule was rushed through by the previous administration with complete disregard to the harm it would cause already struggling working Americans.

The true lender rule undercuts important consumer protections at the State level and greenlights high-cost ``rent-a-bank'' schemes. These schemes let predatory lenders evade State interest rate caps by funneling high-interest loans--loans that are illegal under State law-- -through national banks.

We know these lenders prey upon those struggling to make ends meet and are more likely to operate in areas with higher concentrations of poverty. And they offer complicated loans that are designed to trap consumers in an endless cycle of debilitating debt.

What is especially troubling is that this rule was finalized in November of last year at a time when so many were reeling from an unprecedented public health and economic crisis. And while so many American families struggle to put food on the table and make their rent or mortgage payments, the OCC's rule makes it easier for predatory lenders to prey on those most vulnerable, exacerbating the economic hardship of millions.

Currently, 45 States and the District of Columbia have instituted interest rate caps on installment loans to protect consumers. Earlier this year, my home State of Illinois passed into law a 36-percent cap on interest rates for consumer loans. These protections are essential to ensuring that hard-working Americans are not exploited.

The true lender rule would allow predatory lenders to evade these important State-level consumer protections. Twenty-five State attorneys general, including Illinois Attorney General Kwame Raoul, recently wrote to me and my colleagues to underscore the dangers of the OCC's true lending rule. They say in their letter, ``The OCC's Rule would be exploited by lenders seeking to circumvent these state interest-rate caps and invite, indeed welcome, predatory consumer-lending partnerships . . .''

I agree with the concerns raised by Attorney General Raoul and his counterparts. The Federal Government should be doing more to protect the financial security of Americans, not less.

Congress needs to take action--now more than ever--to protect working families from predatory lending practices. We must rescind this harmful true lender rule. However, addressing the harm of this rule is not enough. More must be done to protect vulnerable American consumers. For more than a decade, I have pushed for a Federal interest rate cap of 36 percent on all consumer loans. This standard is not radical or new. The Federal Government already affords similar protections to military servicemembers and their families. We should expand those protections to all Americans.

COVID-19 has devastated the lives of millions of Americans and brought significant economic challenges to so many households. We need to be protecting the most vulnerable populations who are just trying to get back to normal and get a fair shot at the American dream.

Let's come together on a common goal: to protect American consumers from predatory lending practices. Passing today's CRA resolution would bring us one step closer to that goal.
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