Permitting loan providers to bypass consumer defenses in Colorado is a definite «No»

Unfortuitously, your proposed guideline is really a sort of loan laundering that could allow non-bank lenders to circumvent our state guidelines making customer loans that exceed our state’s limitations.

Here’s exactly just how this proposition undermines Colorado legislation. A non-bank lender, which will ordinarily have to comply with Colorado’s limitations then send the applications to a national bank if they were making the loan, would be allowed to identify Colorado customers and get loan applications filled out and. That bank would then be permitted to deliver the buyer the amount of money for the loan but quickly offer the mortgage back into the non-bank lender for a cost additionally the non-bank lender would then administer the mortgage and gather the charges and interest. The non-bank lender would not have to follow our state rate cap rules and could charge APR’s of 100% or more by“renting the bank” in this way.

This is certainly a “rent-a-bank” proposal – the non-bank loan provider is basically having to pay the bank that is out-of-state hire its charter. The lending company makes use of this arrangement to purchase the capacity to disregard the interest caps associated with the continuing states like Colorado by which they wish to run.

We’d oppose this proposal during good times that are economic. However it is an idea that is particularly bad the COVID pandemic when many of our next-door neighbors and family members are struggling economically. Now, high-cost lending that is predatory more threatening than ever before. Individuals need solid, accountable resources that can help buy them through.

This guideline will never offer good credit choices to underserved communities. It will start the entranceway to high-cost debt traps that drain wide range as opposed to build it – the actual form of predatory services and products Coloradans rejected once they authorized our 36% payday APR caps by a wide margin.

We agree with you that action is required during these severely difficult instances when a lot of Coloradans have been in risk of going hungry, losing their houses, and closing their businesses that are small. We ask one to focus your attention on proven empowerment that is financial like expanded usage of safe and affordable banking, increased use of safe, affordable credit based on the borrower’s ability to settle, free specific monetary coaching, community wealth-building techniques, and strong consumer protections.

The OCC should build upon the customer protections that states like Colorado have put in place perhaps perhaps not widen loopholes that bring right back predatory financial products our state has roundly rejected.

Please table intends to gut the so-called “true lender” doctrine, that is a longstanding anti-evasion provision critical to enforcing state interest rate limitations against high-cost predatory lenders.

Colorado Companies and Organizations

Danny Katz, Colorado Public Interest Analysis Group (CoPIRG)

Scott Wasserman, The Bell Policy Center

Leanne D Wheeler, Veterans of Foreign Wars Post 1

Rosemary Lytle, NAACP Colorado Montana Wyoming State Region Conference

Carmen Medrano, United for an innovative new Economy

Simone Renee, Royal Executive Partnerships

Barbara Freeman, MANAUS – LaMedichi

Josh Downey, Denver Area Work Federation, AFL-CIO

Morgan Royal, Brand New Era Colorado

Lizeth Chacon, Colorado Individuals Alliance (COPA)

Maria Gonzalez, Adelante Community Development

T. A. Taylor-Hunt, Nationwide Association of Consumer Advocates Colorado

Dennis Dougherty, Colorado AFL-CIO

Karen Moldovan, Good Company Colorado

Mike Kromrey, Together Colorado

Kyra deGruy Kennedy, Young Invincibles

Lauren Martens, SEIU Colorado

Carlos Valverde, Colorado Performing Families Party

Jice Johnson, Ebony Company Initiative, PBC

Julie Reiskin, Colorado Cross-Disability Coalition

Jordan Bailey, Philanthropiece

Tiffani Lennon, Colorado Focus On Law and Policy

Peter Severson, Lutheran Advocacy Ministry-Colorado

Robert Brocker, Colorado Senior Lobby

Jeff Kinsey, The Logos Group

Magenta Freeman, DigiMarkPM

Colorado General Assembly Customers

Steve Fenberg, State Senator and Majority Leader

Dominick Moreno, State Senator

Faith Winter, State Senator

Julie Gonzales, State Senator

Brittany Pettersen, State Senator

Tammy Tale, State Senator

Dominique Jackson, State Representative

Mike Weissman, State Representative

Adrienne Benavidez, State Representative

Janet Buckner, State Representative

Yadira Caraveo, State Representative

Emily Sirota, State Representative

Kerry Tipper, State Representative

Jonathan Singer, State Representative

Chris Kennedy, State Representative

Serena Gonzales-Gutierrez, State Representative

Brianna Titone, State Representative

Daneya Esgar, State Representative

Steven payday loans NM Woodrow, State Representative