Industry News

Congress questions banking rule

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The House Financial Services Committee Wednesday criticized a new national banking rule that would exempt national banks from following state lending laws, news sources said. The Committee voted 34-28 to implement an amendment to the rule, which the Office of the Comptroller of the Currency installed this month. The amendment questions whether the OCC can adequately police suspected predatory lenders without more money. State banking authorities and consumer protection groups alike say the lack of state authority compromises consumer protection from deceptive lending practices. Many states have implemented strict laws that aim to curb predatory lending. Critics worry the OCC doesn't have the resources to properly police national banks. The OCC said that national banks are already subject to federal banking laws and that further subjecting them to state laws imposes unnecessary costs and burdens. *** Send a Letter to the Editor for publication.Send a comment or news tip to our new...