Eight states and the District of Columbia are suing the national bank regulator over a rule change that just came into effect.
Per a Jan. 5 filing, New York’s attorney general is leading the charge against the Office of the Comptroller of the Currency and current Acting Comptroller Brian Brooks.
Back in October, the OCC laid out its “True Lender” rule, which took effect at the end of December. The rule dictates that a loan that includes a national bank as a lender can therefore rely on the OCC’s national guidance rather than that of individual states. The controversy here is that many states have especially strong anti-usury provisions, which cap interest rates in the hope of preventing predatory lending. Today’s complaint alleges that the OCC has not taken the concerns seriously:
“While the OCC pays lip service to condemning predatory lending, it gives its wholesale endorsement to lending relationships predicated on evasion of usury laws designed to