Financial Regulation News, June 28, 2021, House approves repeal of Trump-era True Lender Rule
The U.S. House passed a resolution to repeal the Trump administration’s True Lender Rule through the use of the Congressional Review Act.
The regulation allows lenders to go around state laws meant to curb interest rates on loans, opening up the opportunity for these non-bank predatory lenders to charge higher rates. With the House passage, it now goes to President Joe Biden to be signed into law.
The repeal is supported by various stakeholders and consumer protection groups, including a bipartisan group of 25 State Attorneys Generals, the Conference of State Bank Supervisors, the Faith for Just Lending Coalition, Center for Responsible Lending, National Consumer Law Center, Consumer Federation of America, the Military Officers Association of America, the Leadership Conference on Civil and Human Rights, the National Association of Consumer Advocates, the National Association of Federally-Insured Credit Unions, Appleseed Foundation, Consumer Action, National Community Reinvestment Coalition, UnidosUS, U.S. PIRG, and the Woodstock Institute.
