By Suzanne Potter, California News Service
July 24, 2020 (Washington D.C.) -- The Trump administration released a proposal this week that would make it easier for banks and payday lenders to charge sky high interest rates - despite California laws against predatory lending.
The Office of the Comptroller of the Currency wants to overturn the "true lender" doctrine and allow payday lenders to evade state interest-rate caps by listing a bank as the lender.
Lauren Saunders, associate director of the National Consumer Law Center, says this will bring back rent-a-bank schemes and allow companies such as OppLoans and Loan Mart to charge 100% or even 200% in interest.
"It's outrageous at this time of economic crisis that the Trump administration, in action after action, is siding with predatory lenders charging outrageous interest rates that just push people into debt and make it harder and harder for them to feed their family," says Saunders.