New Economy Project opposes the proposed bill, which fails to adequately protect workers from unfair fees and other abusive payroll card practices. Indeed, the bill would directly undercut NYS Department of Labor’s (DOL) strong payroll card regulations, adopted last year, which community, labor, consumer, and civil rights groups across the state have enthusiastically supported.
Climate change is one of the gravest challenges facing our state and our country. While climate change impacts everyone, it has had a particularly devastating impact on New York’s low-income, of-color, immigrant, and other vulnerable communities.
The undersigned elected officials and organizations call on you as members of the New York City Banking Commission to remove Wells Fargo Bank from the City’s list of designated banks. As you may know, Wells Fargo’s federal regulator, the Office of the Comptroller of the Currency (OCC), recently downgraded the bank’s CRA rating to “Needs to Improve,” citing “an extensive and pervasive pattern” of discriminatory and illegal lending practices.
This bill would allow check cashers to partner with out-of-state and nationally-chartered banks to facilitate loans in excess of New York’s usury laws.
The bill would blast a hole in our vital state usury laws, which serve as a crucial bulwark against high-cost and predatory lending. The bill would jeopardize financial security for struggling New Yorkers, particularly low-income immigrants and people of color.
We are extremely concerned about new attempts to undermine our state’s strong consumer protection laws – this time by online lenders that seek to circumvent or diminish our state’s usury laws, firmly on New York’s books since colonial days. We see a clear need for increased consumer protections in the online lending space, and to counter misrepresentations made by industry members as they press legislators for less regulatory oversight and enforcement. We approach the hearing topic today, in terms of the implications of online lending for economic and racial justice, and for equitable community development.
New Economy Project Co-Director Deyanira Del Rio testifies before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, on “Fostering Economic Growth: The Role of Financial Companies.”
New Economy Project joined 246 consumer, civil rights, and community groups in a letter to the Office of the Comptroller of the Currency (OCC) expressing strong opposition to its proposed new federal nonbank lending charters that would enable lenders to avoid state interest rate caps, other state protections, and state oversight.
New Economy Project joined 43 other consumer- and social-justice organizations to urge the Office of the Comptroller of the Currency not to establish a new type of special purpose “national bank” charter for financial technology firms.
We urge the CFPB to issue a strong final rule that, once and for all, stops payday and other high cost lenders from ensnaring people and their families in a debt trap. With its ever-growing wealth and income gaps, our country cannot afford to suffer the disastrous effects of a too-moderate rule that would allow payday lenders continued latitude to make predatory, unaffordable loans.