Crystal Kaldjob spoke to Protocol about members of Congress and consumer advocates pushing for rollback of a Trump-era “True Lender” rule that supporters say has made consumer lending more competitive and critics say is just a new avenue for predatory lending.
Last year, online lenders Avant and Marlette settled with Colorado’s attorney general in a suit that alleged they charged interest rates above the state’s 36% cap. If the True Lender rule change passes, online lenders would not be able to use the OCC [Office of the Comptroller of the Currency] rule as a defense, potentially making it harder to offer these loans.
“The real consequence of not having a bright-line test is you are subject to a patchwork of judicial decisions,” Crystal said, adding that she believes the Colorado settlement could become a model for how the issue is regulated in states.
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