Democrats Seek Legislative Repeal of Trump ‘True Lender’ Rule

March 25, 2021, 9:32 PM

Congressional Democrats took their first steps to undo a Trump administration rule that they say allows predatory lending through “rent-a-bank” schemes.

Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and Sen. Chris Van Hollen (D-Md.) introduced a Congressional Review Act resolution Thursday that would repeal the “true lender” rule issued by the Office of the Comptroller of the Currency in October. Rep. Jesús G. “Chuy” García (D-Ill.) plans to introduce a resolution in the House.

The OCC rule is intended to allow fintechs and other nonbank lenders to issue loans—so long as they’re issued through partnerships with national banks—that could bypass ...

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