Katie Porter: “I express my gratitude to Chairwoman Waters for allowing me to speak in support of invalidating the predatory true…”

“I express my gratitude to Chairwoman Waters for allowing me to speak in support of invalidating the predatory true lender rule. In our home State, the legislature passed an interest rate cap of 36 percent on loans of up to $10,000 about 2 years ago. Before California Governor Newsom had even signed this bill into law, predatory online lenders began plotting during their shareholder earnings calls to evade the new law through rent-a-bank arrangements. Companies like Speedy Cash and CashNetUSA went so far as to gloat about the California law creating a huge opportunity for them by driving out their competition, subprime title lenders based in California. Since the founding of the United States, States have chosen to impose their own limits on interest rates that lenders may charge consumers. The Trump administration's true lender rule greenlit these rent-a-bank schemes and, in doing so, undermined the will of Californians who, through the democratic process, chose to prohibit abusive interest rates. The true lender rule violates our federalist democracy, and it must be invalidated. Mr. McHENRY. Madam Speaker, I yield 2 minutes to the gentleman from Florida (Mr. Donalds), who has been a great new Member of Congress.”