House Should Be True to America’s Credit Need and Reject Anti-True Lender Resolution

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The House is expected to vote soon on a resolution that would un-do a valuable Trump-era deregulatory rule called the “True Lender” rule. CEI led a coalition this week opposing the resolution, and CEI’s John Berlau explains in a statement how the rule, left in place, will aid consumers as they recover from pandemic hardships.

Statement by John Berlau, CEI Senior Fellow:

“As many resilient American families and entrepreneurs seek to utilize credit to help rebuild their lives after a devastating pandemic, the House should not throw roadblocks in their way. Members should heed the voices of community banks and free market groups and oppose S.J.Res 15, the measure that would overturn the True Lender rule from the Office of the Comptroller of the Currency that vastly reduces uncertainty for banks that partner with fintech firms to provide loans.

“As stated in a letter led by CEI and signed this week by more than 20 leaders of free market groups:

The True Lender rule aims to clear away the red tape that has prevented community banks from offering credit products, such as installment loans, made in partnership with innovative fintech firms to consumers throughout the country. By clearing these barriers, the rule has helped smaller banks compete with big banks to give consumers more credit choices.

“S.J.Res 15 has also been opposed by groups representing banks of all sizes, including the Independent Community Bankers of America. The House should reject the resolution, let this good rule stand, and work on bipartisan legislation to expand – not restrict – access to credit.”