¶ Payday Lending Crony
Rep. Patrick McHenry has received nearly $190,000 from the payday industry, the third most of any sitting member of Congress. Unsurprisingly, McHenry has worked to benefit the industry, twice introducing legislation making it easier for predatory lenders to avoid state interest rate caps through “rent-a-bank” partnerships.
¶ Rep. McHenry Has Received Nearly $190,000 From The Payday Industry, The 3rd Most Of Any Sitting Member Of Congress.
¶ Rep. McHenry Has Received Nearly $190,000 From The Payday Industry, The 3rd Most Of Any Sitting Member Of Congress.
According To OpenSecrets, McHenry Has Received Nearly $190,000 From The Payday Industry Over His Career, The 3rd Most Of Any Sitting Member Of Congress:
[OpenSecrets, accessed 01/30/23]
¶ Rep. McHenry Has Twice Introduced Legislation Meant To Help Payday Lenders Get Around State Interest Rate Caps.
¶ Rep. McHenry Has Introduced Two Versions Of The Protecting Consumers’ Access To Credit Act, Legislation That Over 150 Organizations Urged Congress To Reject Because It Would Expand “Rent-A-Bank” Arrangements Which Allow High-Cost Lenders To Avoid State Interest Rate Caps.
Rep. McHenry Has Introduced Two Versions Of The Protecting Consumer Access To Credit Act, One Of Which Passed The House In February 2018:
- July 2017: During The 115th Congress, Rep. McHenry Introduced H.R. 3299, The Protecting Consumers’ Access To Credit Act Of 2017, Which Passed The House With A Vote Of 245-171 In February 2018. [Congress.gov, accessed 01/10/23]
- July 2016: During The 114th Congress, Rep. McHenry Introduced H.R. 5724, The Protecting Consumers’ Access To Credit Act Of 2016, Which Did Not Proceed Past The House Financial Services Committee. [Congress.gov, accessed 01/10/23]
February 2018: After The 2017 Version Of His Protecting Consumers’ Access To Credit Act Passed The U.S. House, McHenry Issued A Statement Claiming The Bill “‘Marks An Important Step Towards Modernizing Our Financial System.’” “Chief Deputy Whip Patrick McHenry (NC-10), the Vice Chairman of the House Financial Services Committee released the following statement on the House passage of H.R. 3299, the Protecting Consumers' Access to Credit Act of 2017: ‘The Protecting Consumers’ Access to Credit Act is a simple bill that can have an outsized impact on American families and small businesses. This legislation merely restores consistency to our nation’s banking laws after activist judges upended nearly 200 years of legal precedent.’ ‘The practical effect of this bipartisan bill is much more significant. Its passage marks an important step towards modernizing our financial system and ensuring financial inclusion for all Americans.’” [Rep. Patrick McHenry, 02/14/18]
September 2017: The Center For Responsible Lending (CRL) And 150 Organizations Urged Congress To Reject H.R. 3299, The Protecting Consumers’ Access To Credit Act Of 2017, Arguing It Would Make It Easier For Predatory Lenders To “Use Rent-A Bank Arrangements To Ignore State Interest Rate Caps And Make High-Rate Loans.” “The Center for Responsible Lending (CRL), the National Consumer Law Center (NCLC), and 150 national and state organizations urge Members of Congress to reject S. 1642 and H.R. 3299, legislation that pose serious risks of enabling a vast expansion of predatory lending across the country. Specifically, the legislation makes it easier for payday lenders and other nonbanks to use rent-a bank arrangements to ignore state interest rate caps and make high-rate loans.” [Center for Responsible Lending, 09/11/17]
- CRL And The Other Organizations Noted The Legislation Could Undermine Interest Rate Caps In 15 States And The District Of Columbia That Save Consumers Over $2.2 Billion In Payday Loan Fees Per Year. “The potential costs and damage to consumers are significant, the groups warn. S. 1642 and H.R. 3299 could potentially expand short-term payday lending to the 15 states plus the District of Columbia whose state interest rate limits currently save borrowers over $2.2 billion annually in payday loan fees.” [Center for Responsible Lending, 09/11/17]