'Predatory' Bill May Be Modeled on NC Law

Rep. Spencer Bachus, R-Ala., says he is trying to find a consensus on predatory-lending legislation by using a North Carolina law as a model, and sources indicate that the high-ranking House Financial Services Committee member wants to hold a mark-up this spring."A bipartisan group of congressional members are working with consumer and industry groups in an attempt to fashion legislation patterned after North Carolina's law," Rep. Bachus said. "If a consensus can be reached, a mark-up will be held." As chairman of the House Financial Services financial institutions subcommittee, Rep. Bachus will have to overcome a strong divide between industry and consumer groups. Consumer groups and Democrats generally support the North Carolina predatory-lending law, which was the first of its kind in 1998 when it was passed by the state legislature. Lenders support a comprehensive predatory-lending bill, sponsored by Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Pa., which would create a national subprime lending standard and pre-empt state and local predatory-lending laws. But their support for this bill has not resulted in any legislative action.