By Jon Hill (June 15, 2022 at 5:35 p.m. EDT) — A senior official at the Consumer Financial Protection Bureau on Wednesday hinted at a possible scrutiny of some non-banks making improper, high-priced loans through bogus partnerships with banks investigating the phenomenon of ” Rent-a-Bank Programs”.
Commenting at an event hosted by the Consumer Federation of America, CFPB associate director Zixta Martinez said some non-bank rate providers are collaborating with banks to “circumvent state interest rate caps and licensing laws,” describing it as a Issue affecting the Agency Radar.
“Some lenders using Rent-a-Bank programs have unusually high default rates, raising questions about whether…
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