In a letter to the House Financial Service Committee, 120 consumer, civil rights, labor, community and legal services organizations including WV CAG voiced their opposition to HR 4439 (Hollingsworth), the so-called Modernizing Credit Opportunities Act. The bill would allow payday lenders to use the fine print of loan terms and sham rent-a-bank arrangements to make loans at 100% to 400% APR or higher in states where those rates are illegal. The bill would undercut the historic power of the states to protect people from dangerous, usurious loans.
[pdf-embedder url=”https://wvcag.org/blog/wp-content/uploads/2018/05/HR-4439-Sham-Lender-final-consumer-oppo-letter.pdf” title=”HR 4439 Sham Lender final consumer oppo letter”]