As October is fast approaching, the House and Senate are eagerly working during their last handful of legislative days to conduct final hearings and pass funding legislation via a continuing resolution that will keep the federal government open through early December. 

Of importance to NPA Members is federal rate cap legislation and de-risking. Both of them popped up as policy issues at recent hearings.  

During a Senate Banking Committee hearing on “new financial products” (buy now pay later services, earned wage advance products and training repayment service plans) the discussion was that such products often evade state usury protections because they are not regulated as credit and often use bank rent-a-charter.  

Accordingly, as a solution Sen. Reed (D-RI) mentioned his MLA rate cap bill. He stated nationwide protection from

predators charging more the 36% APR is needed and noted the military already has such protection. Consumer group witnesses agreed his bill should become law, especially to cover the smaller dollar loan market.  

And at a hearing about lack of banking access in Caribbean nations, de-risking was covered with…