OCC Issues Predatory Lending Reg

The Office of the Comptroller of the Currency has incorporated its 2003 anti-predatory-lending guidelines into a regulation to emphasize its commitment to take enforcement actions when it discovers unfair and deceptive lending practices at national banks."It responds to critics who have said OCC does not have sufficient enforcement authority," said James McLaughlin, director of regulatory affairs at the American Bankers Association. Rep. Barney Frank, D-Mass., has been critical of OCC consumer protection efforts and remains "skeptical" of OCC authority to take action against unfair and deceptive practices, as provided in the Federal Trade Commission Act. "It is a good-faith effort by the OCC, and I welcome it," he said. "But it shows there are legal limitations on their ability to carry this out." Meanwhile, the National Community Reinvestment Coalition complained that the OCC's guidelines are vague and ridden with holes. "While the guidance attempts to address common predatory lending practices, in fact, these standards provide little consumer protections in our communities."