Providing for Congressional Disapproval 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. LOUDERMILK. Madam Speaker, I thank my friend and colleague from North Carolina for managing the opposition to this.

Look, it is simple. The reason we are here today is to debate the Democrats' latest episode in their anti-financial technology agenda, but also their rush to undo any policy of the previous administration, whether it was good or bad.

Now, here are the facts: More than 30 percent of adults are unbanked or underbanked, 40 percent do not have enough savings to cover a $400 emergency expense, 42 percent have a subprime credit score and are rejected for bank loans at a rate four times higher than those with prime credit.

Now, fintech has been instrumental in expanding access to credit for consumers who have little or no credit history. Online lending has grown to $90 billion a year.

So what do consumers typically use these loans to pay for?

Funerals, weddings, car repairs, and home improvement.

Fintech is particularly important for minorities. In fact, fintechs were the top PPP lenders to Black-owned businesses and Hispanic-owned businesses during the pandemic.

But there is an issue that has caused difficulty when banks and fintech companies partner to make loans, and that is the question of which entity is considered the true lender. Until recently, this question was attempted to be settled in a series of confusing and conflicting lawsuits. The courts are divided on it. But, last year, the OCC finalized a rule to provide much-needed certainty. It is no surprise that the organizations calling for the rule to be overturned are the so-called consumer groups that, for the most part, are funded by trial lawyers.

The Democrats are attempting to overturn this rule because some imaginary lenders could rent a bank charter to engage in predatory lending, but as the ranking member has just stated, that is clearly prohibited in the existing rule. This resolution is devastating to minority consumers and businesses, those with subprime credit, and the unbanked.

Instead of giving those people options, this resolution would direct them to payday lenders, or in States like Georgia where payday lending is illegal, they will have no access to credit.

Madam Speaker, I urge opposition to this disastrous resolution.

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