Skip to main content
Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

House Financial Services Committee Passes Bill That Would Pre-empt State Usury Laws

Federal Issues House Financial Services Committee Usury Lending Federal Legislation Madden

Federal Issues

On November 15, the House Financial Services Committee (Committee) announced the passage of H.R. 3299, “Protecting Consumers Access to Credit Act of 2017,” which would amend the “Revised Statues and the Federal Deposit Insurance Act” to explain that bank loans that were valid as to their maximum rate of interest in accordance with federal law at the time the loan was made shall remain valid with respect to that rate, regardless of whether the bank subsequently sells or assigns the loan to a third party. This would have the effect of preempting contrary state usury laws and effectively overturn the 2015 decision in Madden v. Midland Funding, LLC.

The bill passed Committee 42-17.

InfoBytes previously covered the bill’s introduction and also, a similar measure introduced in the Senate.