Payday Lending Back in South Dakota? We Can’t Let it Happen! Stop Rent-a-Bank Schemes
On July 20, 2020, the federal Office of the Comptroller of the Currency (OCC) proposed a rule that would allow national banks to ignore our 36% cap. The proposed rule would dismantle protections that prevent national banks from making loans at interest rates above state limits.
The OCC’s proposed rule would bless a scheme where predatory lenders can pay an out-of-state bank to pose as the “true lender,” even though the predatory lender markets, makes and manages the loan. This “rent-a-bank” scheme would allow the predatory lender to use the bank’s exemption from our interest rate cap to charge 100%, 200%, and higher, in direct defiance of the 36% cap we voted for by a large majority in 2016.
The OCC is thumbing their nose at our right to determine our own consumer protections.
We can’t let rent-a-bank bring payday lending debt traps back to South Dakota. As South Dakota families struggle through these unprecedented and uncertain economic times, high-cost predatory lending is more dangerous than ever. This proposed rule shows no regard for the consequences and financial realities of our working families.
To prevent this dangerous new rule from devastating South Dakotans, submit a comment to the OCC by September 3. Tell them why they should rethink this rule and respect the right of South Dakota to set its own cap on interest rates for payday and other consumer loans.
File your comment here: https://www.federalregister.gov/documents/2020/07/22/2020-15997/national-banks-and-federal-savings-associations-as-lenders
Our Coalition
These organizations have joined South Dakotans for Responsible Lending to support a 36% rate cap on payday, car title and installment loans. To add your group to this list, please contact us.
South Dakota Family Policy Council
South Dakota Bread for the World
South Dakota Peace and Justice
Minnehaha County Democratic Party
Pennington County Democratic Party
National Association of Social Workers, South Dakota Chapter
Church Partners
These South Dakota church organizations have endorsed our campaign, and they are encouraging their members to vote NO on Amendment U and YES on Initiated Measure 21 on Tuesday, November 8.
South Dakota Faith in Public Life
SD Synod of the Evangelical Lutheran Church in America (ELCA)
South Dakota Conference United Church of Christ
Dakotas Conference of the United Methodist Church
Presbytery of South Dakota