JACKSON, Miss.–A prominent credit union leader here is saying a proposal by the OCC and the FDIC that encourages high-cost lenders to partner with banks will undermine state law protections and put many people, especially low-income individuals, at risk in the Deep South.
“The OCC and FDIC proposals are deeply troubling,” said Bill Bynum, the CEO of Hope Credit Union and Hope Enterprise Corporation who has been widely lauded for his work and the work of the two organizations. “Here in the Deep South, we already see a high prevalence of predatory lending that targets the elderly, the poor and others who are most vulnerable. The federal regulators’ proposal will encourage high-cost lenders to circumvent state interest rate limits, and subject even more hard-working people to the dangerous burden of debt trap loans.”
What Should Be Done
Diane Standaert, Director of the Hope Policy Institute, said the proposals would strip away millions of dollars a year from pocketbooks of people in the Deep South.
“Rather than facilitating high-cost loans, OCC and FDIC should be doing more to ensure banks better serve our people and communities. It is even more troubling that the OCC and FDIC proposals come as the Consumer Financial Protection Bureau is separately considering a proposal to repeal protections for payday loans, car title loans, and other high-cost loans,” said Standaert.
HOPE (Hope Enterprise Corporation, Hope Credit Union and Hope Policy Institute) seeks to provide affordable financial services, leverage private, public and philanthropic resources, and engage in policy analysis to fulfill its mission of strengthening communities, building assets, and improving lives in economically distressed parts of Alabama, Arkansas, Louisiana, Mississippi and Tennessee.