Woodstock Institute wrote to federal regulators in protest of OneMain Financial’s application for an industrial loan company (ILC) bank charter to create OneMain Bank. We have substantive concerns regarding potential harm to consumers and the undermining of various state consumer protection laws.
If granted an ILC charter, OneMain Financial will become exempt from Illinois’s 36% APR cap on consumer loans and thus be able to resume its predatory lending activities in the State. Additionally, Woodstock is concerned with the less stringent regulatory scheme applied to ILC banks compared to traditional banks. ILCs are not subject to the Community Reinvestment Act, which incentivizes financial systems to serve communities equitably.
To learn more, download the full letter here.
