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Published: January 2017
Innovation should not come at the expense of consumer protection
More than 250 groups sent a letter today to Comptroller of the Currency Thomas J. Curry urging him not to grant national charters to financial technology firms, which could pre-empt state oversight and state consumer protection laws that protect consumers and small businesses from abusive financial practices. The letter sends a strong message to the Office of the Comptroller of the Currency about the risk it creates to state-level protections against predatory lending.
The Office of the Comptroller of the Currency (OCC) announced its intention to offer national charters to financial technology firms (“fintech”), which could severely undermine state oversight and state consumer protection laws that protect consumers from abusive financial products and practices. Consumer Action joined hundreds of advocates, including state advocates, affordable housing providers, national civil rights organizations, small businesses and consumer advocates in opposing federal nonbank lending charters that would enable fintech companies to avoid state interest rate caps, other state consumer protection laws, and state oversight, putting consumers and small businesses at risk. Many of the letter signors have spent years enacting and defending the very state law protections the charter proposal undermines.
Americans for Financial Reform (AFR)
A New Leaf | Action Advocacy Law Office | ACTION Housing Inc. | Advantage Housing, Inc | Allied Progress | Americans for Financial Reform | Consumer Action | Consumers Union | CoPIRG | Covenant House | Demos | District Council 37 Legal Services | Durham Regional Financial Center | Eastside Community Development Corporation | Economic Progress Institute | Empire Justice Center | National Development Council | National Association for Latino Community Asset Builders | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low-income clients) | National Council of La Raza | National Fair Housing Alliance | Public Good Law Center | Public Interest Law Center | Reinvestment Fund | Reinvestment Partners
To read the letter or too see the full list of supporting advocate groups, click here.
For more information, visit AFR.
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