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Published: November 2016
Preventing FinTech from avoiding regulation and preying on consumers
In a letter to the Office of the Comptroller of the Currency, Consumer Action joined consumer, civil rights, small business, and other community organizations to express strong opposition to new federal nonbank lending charters that would enable financial technology companies (also known as “fintech”) to avoid state consumer protection laws and state oversight, putting consumers and small businesses at risk.
In recent years, fintech firms have expanded their presence and products in the financial system and increased financing to consumers and small businesses. A number of new companies offer a wide range of products and services, such as alternative payment services (like Apple Pay, PayPal, Venmo and Square), peer-to-peer loans, small business or consumer loans and cash advance products. Consumer and small business advocates have urged regulators to pay close attention to possible systemic risks that could emerge from the rapidly growing fintech sector.
Americans for Financial Reform (AFR)
AARP | A New Way Forward | AFL-CIO | AFSCME | Alliance For Justice | American Income Life Insurance | American Sustainable Business Council | Americans for Democratic Action, Inc | Americans United for Change | Campaign for America’s Future | Campaign Money | Center for Digital Democracy | Center for Economic and Policy Research | Center for Economic Progress | Center for Media and Democracy | Center for Responsible Lending | Center for Justice and Democracy | Center of Concern | Center for Effective Government | Change to Win | Clean Yield Asset Management | Coastal Enterprises Inc. | Color of Change | Common Cause | Communications Workers of America | Community Development Transportation Lending Services | Consumer Action | Consumer Association Council| Consumers for Auto Safety and Reliability | Consumer Federation of America | Consumer Watchdog | Consumers Union | Corporation for Enterprise Development | CREDO Mobile | CTW Investment Group | Demos | Economic Policy Institute | Essential Action | Green America | Greenlining Institute | Good Business International | Government Accountability Project | HNMA Funding Company | Home Actions | Housing Counseling Services | Home Defenders League | Information Press | Institute for Agriculture and Trade Policy | Institute for Global Communications | Institute for Policy Studies: Global Economy Project | International Brotherhood of Teamsters | Institute of Women’s Policy Research | Krull & Company | Laborers’ International Union of North America | Lawyers’ Committee for Civil Rights Under Law | Main Street Alliance | Move On | NAACP | NASCAT | National Association of Consumer Advocates | National Association of Neighborhoods | National Community Reinvestment Coalition | National Consumer Law Center (on behalf of its low-income clients) | National Consumers League | National Council of La Raza | National Council of Women’s Organizations | National Fair Housing Alliance | National Federation of Community Development Credit Unions | National Housing Resource Center | National Housing Trust | National Housing Trust Community Development Fund | National NeighborWorks Association | National Nurses United | National People’s Action | National Urban League | Next Step | OpenTheGovernment.org | Opportunity Finance Network | Partners for the Common Good | PICO National Network | Progress Now Action | Progressive States Network | Poverty and Race Research Action Council | Public Citizen | Sargent Shriver Center on Poverty Law | SEIU | State Voices | Taxpayer’s for Common Sense | The Association for Housing and Neighborhood Development | The Fuel Savers Club | The Leadership Conference on Civil and Human Rights | The Seminal | TICAS | U.S. Public Interest Research Group | UNITE HERE | United Food and Commercial Workers | United States Student Association | USAction | Veris Wealth Partners | Western States Center | We the People Now
For more information, visit AFR.
Preventing FinTech from avoiding regulation and preying on consumers (OCCreNPRM.compressed.pdf)