AFC Statement on Senate CRA of OCC's True Lender Rule

WASHINGTON, May 11, 2021 /PRNewswire/ -- American Fintech Council Chief Executive Officer Garry Reeder released the following statement today after the U.S. Senate approved a resolution to roll back the Office of the Comptroller of the Currency's True Lender rule, which will now be considered by the U.S. House of Representatives:

"While we are disappointed with the outcome of today's vote, we welcome Chairman Brown's comments highlighting the presence of responsible bank-fintech partnerships. We also support his remarks regarding an 36% APR cap which we have long supported and for which we will continue to advocate. 

"When properly deployed, the bank partnership model enables more providers to reach more consumers at cheaper prices. The OCC's True Lender rule was intended to enable banks to collaborate with fintech firms to expand affordable access to fair and transparent credit, and to allow Americans to continue to benefit from the innovation and responsible credit products offered through fintech firms. 

"The American Fintech Council is committed to challenging the status quo and reducing the financial burdens borne disproportionately by communities of color and low-income families.  Financial inclusion requires a stable regulatory regime. In that vein, the AFC advocates that the OCC's True Lender rule remain in place, but be improved and strengthened by the next Comptroller of the Currency, whenever she or he is appointed by the President and confirmed by the Senate. 

"We urge the House of Representatives to work with advocates, civil rights organizations, and trade groups in order to allow the next Comptroller to amend the OCC's rule.  We are fully committed to supporting a rule that creates a competitive marketplace that protects consumers and empowers them to live better financial lives."

Contact: [email protected]

SOURCE American Fintech Council