The U.S. House of Representatives passed a bill that would provide consumers and small businesses with more opportunities to access loans through financial technology products.
The Protecting Consumers’ Access to Credit Act of 2017 (HR 3299) clarifies recent legal confusion that has limited the ability of consumers and small businesses to use the modern financial services marketplace.
Specifically, the bill, introduced by Rep. Patrick McHenry (R-NC) and Gregory Meeks (D-NY), says bank loans that are valid when made as to their maximum rate of interest in accordance with federal law shall remain valid with respect to that rate regardless of whether a bank has subsequently sold or assigned the loan to a third party.
“We applaud Reps. McHenry and Meeks for introducing this legislation that helps consumers by strengthening capital markets and competition, and we urge the Senate to take up this legislation and pass it immediately,” Lisa McGreevy, president and CEO of the Online Lenders Alliance, said.
The Online Lenders Alliance (OLA) is the center for lending, technology, and innovation, representing the growing industry of companies offering loans online. OLA members abide by best practices and code of conduct to ensure their customers are informed and fairly treated.
The bill now advances to the U.S. Senate for consideration.