June 22, 2021
The Honorable Nancy Pelosi, Speaker, United States House of Representatives H-232, The Capitol Washington, D.C. 20515
The Honorable Kevin McCarthy, Minority Leader, United States House of Representatives H-204, The Capitol, Washington, D.C. 20515
Dear Speaker Pelosi and Minority Leader McCarthy,
As leaders of conservative and free-market groups who stand firm against regulatory barriers that impede opportunities for consumers and small businesses, we write in opposition to House passage of Senate Joint Resolution 15, the Congressional Review Act resolution to overturn the “True Lender” rule issued last year by the Office of the Comptroller of the Currency.
The True Lender rule aims to clear away the red tape that has prevented community banks from offering credit products, such as installment loans, made in partnership with innovative fintech firms to consumers throughout the country. By clearing these barriers, the rule has helped smaller banks compete with big banks to give consumers more credit choices.
For decades, the National Bank Act allowed large federally-chartered banks to issue credit cards throughout the country without being subject to numerous state rules. But courts would often slam the door to this protection for smaller banks if they partnered with outside firms to offer consumers credit by deeming the partnering firm as responsible for the loan. The True Lender rule makes it clear that smaller banks that adhere to the rules of the federal government and their home states will not be subject to the red tape of other states regardless of whether they partnered with an outside firm to make the loan.
The True Lender Rule creates more choices for consumers and advances true federalism. Many of our groups have long advocated that consumers should be free to buy health plans across state lines, as the sovereignty of consumers should take precedence over that of arrogant state governments that issue excessive regulations. We believe American consumers should also have this freedom when shopping for the best credit products for themselves and their families.
For these reasons, the undersigned groups oppose S.J.Res. 15 and urge a “No” vote should the measure be brought to the floor. Thank you for consideration of our views.
John Berlau Senior Fellow, Competitive Enterprise Institute
Adam Brandon President, FreedomWorks
James L. Martin, Founder/Chairman 60 Plus Association
Saulius “Saul”Anuzis, President, 60 Plus Association
Richard Manning President, Americans for Limited Government
Brent Wm. Gardner Chief Government Affairs Officer Americans for Prosperity
Grover Norquist, President, Americans for Tax Reform
Ron Paul Chairman, Campaign for Liberty Chair, Subcommittee on Monetary Policy, House Financial Services Committee 2011-2012
Ryan Ellis, President, Center for a Free Economy
Andrew F. Quinlan, President, Center for Freedom and Prosperity
Jeffrey Mazzella, President Center for Individual Freedom
Ray F. Chadwick, Chairman Granite State Taxpayers
Garrett Bess, Vice President Heritage Action for America
Heather Higgins, CEO, Independent Women’s Voice
Andrew Langer, President Institute for Liberty
Tom Giovanetti, President Institute for Policy Innovation
Seton Motley, President Less Government
Connor Boyack, President Libertas Institute
Paul Gessing, President Rio Grande Foundation
Karen Kerrigan, President & CEO Small Business & Entrepreneurship Council
David Williams, President Taxpayers Protection Alliance
Jenny Beth Martin, Honorary Chairman Tea Party Patriots Action