By Cliff Andrews, CapCity Advocates

2/16/23

Last week the House Financial Services Committee held its first hearings of the new congress and of interest to NPA was a hearing titled:  Revamping and Revitalizing Banking in the 21st Century. This hearing largely focused on promoting de novo banking charters which Republicans feel will foster the formation of new depository institutions in underserved and rural communities. Any time there is discussion about providing access to financial services the NPA monitors to make sure pawn is not mentioned. Often members of Congress will state that alternative financial services providers like payday are predatory and therefore more depository institutions are needed.

In addition to bank charters the Committee discussed data security legislation. As we previously reported this topic is a priority for Chairman McHenry, who released draft legislation last year. The committee intends to introduce a new bill soon that would amend the Gramm Leach Bliley Act. Democrats and consumer groups oppose the Republican bill mainly because the preemption provisions would supersede existing state laws and there is no private right of action. NPA always monitors these bills to determine potential impacts to pawnbroker store owners and their customers. Key provisions include: