Bloomberg Law
June 3, 2021, 3:17 PMUpdated: June 4, 2021, 1:54 PM

National Charter for Fintech Lenders Revived by Second Circuit (4)

Lydia Beyoud
Lydia Beyoud
Fintech & Regtech Reporter
Evan Weinberger
Evan Weinberger

The Office of the Comptroller of the Currency can issue federal bank charters to fintech companies that don’t accept deposits, the Second Circuit ruled.

The New York Department of Financial Services failed to show it had suffered actual or imminent injury from the OCC’s 2017 rules allowing special charters for fintech lenders, the U.S. Court of Appeals for the Second Circuit said Thursday. The decision reverses a 2019 district court ruling in favor of the state.

New York’s challenge is too speculative since no charters have actually been issued under the OCC policy, the appellate court said.

“It is unclear ...

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