States Need Bigger Role in Halting Predatory Lending
On January 7, 2004, the federal Office of the Comptroller of the Currency quietly staged a coup against the U.S. states. The move poked a gaping hole in the laws shielding consumers from predatory banking practices, and also coincided with a historic boom in subprime lending. Now we’re paying the price. On paper, the OCC regulates the country’s national banks. And it doesn’t like to share. Five years ago, the agency passed rules allowing it to preempt state laws governing these institutions. That authority applies even if no federal statue exists protecting consumers from unfair financial practices. Big banks lobbied hard for federal preemption because state laws are typically more stringent. By contrast, many legal experts said at the time…
0 Comments