NEW YORK (AP) — Congress has overturned a set of regulations enacted in the final days of the Trump administration that effectively allowed payday lenders to avoid state laws capping interest rates.
The House voted 218-208 to overturn the Office of the Comptroller of the Currency’s payday lending regulations with one Republican voting with Democrats.
Thursday’s vote to overturn the OCC’s “true lender rules” marked the first time Democrats in Congress successfully overturned regulations using the Congressional Review Act.
The act was enacted in the mid-1990s and gives Congress the authority to overrule federal agency rules and regulations with a simple majority vote in the House and Senate.