Spitzer Threatens Suit Over Lending Proposal
New York Atty. Gen. Eliot Spitzer said he might file a suit against a federal bank regulator to force it to drop a plan to exempt national banks from states’ lending laws.
Spitzer was joined by U.S. Reps. Charles B. Rangel (D-N.Y.) and Gregory W. Meeks (D-N.Y.) and officials of several consumer groups in urging the Office of the Comptroller of the Currency to withdraw its proposal, which they said could interfere with states’ ability to protect consumers.
The OCC ruled in an individual case in August that national banks did not have to comply with state predatory lending laws. It then proposed to formalize its decision to grant all national banks exemptions from state lending laws.
Predatory lending laws are aimed at abuses such as exorbitant fees and interest rates and payments for undisclosed insurance products.