Chief Deputy Whip Patrick McHenry (NC-10), the Vice Chairman of the House Financial Services Committee released the following statement on the House passage of H.R. 3299, the Protecting Consumers' Access to Credit Act of 2017:

"The Protecting Consumers’ Access to Credit Act is a simple bill that can have an outsized impact on American families and small businesses. This legislation merely restores consistency to our nation’s banking laws after activist judges upended nearly 200 years of legal precedent.

"The practical effect of this bipartisan bill is much more significant. Its passage marks an important step towards modernizing our financial system and ensuring financial inclusion for all Americans"

Congressman McHenry spoke on the House floor earlier today in support of the Protecting Consumers' Access to Credit Act. To watch his speech click here or on the image above.

BACKGROUND:

H.R. 3299, the Protecting Consumers’ Access to Credit Act of 2017 reaffirms the longstanding legal precedent under federal banking laws that preempts a loan’s interest as valid when made.  

In 2016, the Supreme Court declined to hear the case Madden v. Midland Funding, LLC.  In Madden, the Second Circuit held that the National Bank Act, which preempts state usury laws regulating the interest a national bank may charge on a loan, does not have a preemptive effect after the national bank has sold or otherwise assigned the loan to another party.  This reading of the National Bank Act was unprecedented and has created uncertainty for fintech companies, financial institutions, and the credit markets.